DTH’s 20 Exchange Place Trades Hands to Dermot for $370M
The iconic 1931 tower was converted from office to luxury apartment rentals in 2014
By Brian Pascus August 1, 2024 3:43 pm
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One of the storied Art Deco skyscrapers in Lower Manhattan is trading hands.
20 Exchange Place — a 57-story, 767-unit, landmarked apartment tower built in 1931 — has been sold by owner DTH Capital to The Dermot Company for $370 million. Crain’s New York Business first reported the deal.
Dermot partner with PGGM on the acquisition.
DTH Capital, whose managing partners are siblings Davina and Nathan Bruckner, most recently secured a $268.7 million loan from Berkadia in 2017 for the iconic prewar tower.
Formerly known as the City Bankers Trust Building, 20 Exchange place spans 724,300-square-feet and features an evocative mix of mohegan granite and Alabama rockwood limestone as its exterior. Its carved facade showcases a row of 14 Assyrian-style busts called “the giants of finance,” while the lobby holds a vaulted ceiling with geometric marble mosaic tiles.
For much of its history, the Financial District building served as an office tower and housed tenants such as Lehman Brothers, BNY, and First Boston.
Andrew Levison, partner and chief operating officer for Dermot, called the purchase of 20 Exchange, “a rare opportunity,” and one that came through an existing relationship that enabled Dermot to purchase the building at an attractive basis that is “significantly below replacement cost.”
“Given the vintage of the conversion, the building is ready for some upgrades to remain competitive with the newest crop of conversions that are being brought to market,” said Levinson in a statement. “We are excited to bring our exclusive management and amenity program to the residents of 20 Exchange Place.”
In 2004, developers Yaron Bruckner, the late father of Nathan and Davina, and Nathan Berman, founder and CEO of Metro Loft NYC, bought 20 Exchange Place for $153 million, and went about converting the aging office tower into a mixed-use, luxury apartment complex.
Shortly after Bruckner’s 2013 death, Berman completed the conversion, largely through a $240 million loan from Natixis Real Estate Capital. Today apartment prices for studios range between $2,389 and $3,980, while one-bedrooms and two-bedrooms can rent for as much as $5,780 and $6,540, respectively, according to Streeteasy.
The building also features ground-floor and cellar retail space, whose tenant, Emursive, manages an immersive theater space.
Dermot plans on completing some renovation but will keep the building as an apartment complex, according to Levison.
“We plan to enhance the long-term value of the property through elevating interior living spaces and amenities and bringing our unique style of management to the residents of 20 Exchange,” he said.
The tower has been plagued by elevator issues in recent years. The New York Times reported in 2022 that tenants above the 15th floor lost all elevator service for weeks at a time, a problem that led ownership to house residents in other buildings and hotels, and for tenants to coin the moniker “high-rise hell.”
20 Exchange also has some film credits to its name. The building was featured extensively in Spike Lee’s 2006 thriller “Inside Man” and in 2014’s “The Amazing Adventures of Spider Man.”
Jason Beren, CEO of DTH Capital, said his firm is “honored” to have managed 20 Exchange over the past two decades.
“DTH Capital will continue its focus on further enhancing its other iconic downtown luxury residential property, 70 Pine, and appreciates Dermot’s commitment to leading 20 Exchange through its next developmental phase,” said Beren.
Brian Pascus can be reached at bpascus@commercialobserver.com
