BankNote Building Changes Hands for $114M
The BankNote building, once the home of the American Bank Note company, was sold last week for $114 million to a joint venture between the Madison Marquette and Perella Weinberg Partners Asset Based Value Strategy.
“We are excited to be acquiring The BankNote Building, a historically significant and renowned property,” David Schiff, a partner at Perella Weinberg Partners, said in a press release.
First reported by Crain’s New York, the deal is part of a wave of investment in the outer boroughs capitalizing on tenants’ quest for affordable office space.
“This deal extends our joint commitment to building value in emerging infill urban markets with substantial promise for the future,” Amer Hammour, the chairman of Madison Marquette, said. “We are also excited at the opportunity of participating in and contributing to the rapidly emerging revival of the Bronx—with its extraordinary proximity to New York’s urban core.”
The 400,000-square-foot building, located at 890 Garrison Avenue in the Hunts Point section of the Bronx, was built in 1909 and achieved status as a New York City landmark in 2008. It was purchased in 2007 by ABN Associates LLC, comprised of affiliates Taconic Investment Partners and Denham Wolf Real Estate Services, which is now selling the building in an off-market deal.
After completing the value-add component of the acquisition, Taconic had planned on selling the asset.
Over the past seven years, the building has gone from being primarily vacant to having 93 percent of its space leased. Tenants include the Human Resources Administration (HRA), BOCNET, Iridescent-ONR, the Hunts Point Alliance for Children, Urban Health Plan, JVL Charter School, Fedcap and the office of Congressman José Serrano.
“The additional traffic based on the tenants of the building will help further enhance [Hunts Point],” Peter Febo, chief operating officer for Taconic, told Commercial Observer.