Verizon Communications Inc. has agreed to sell the top portion of the landmark 140 West St. skyscraper to an affiliate of Magnum Real Estate Group for $274 million, and relocate about 1,100 employees to another property owned by the telecommunications giant in Brooklyn.
Magnum will convert 22 floors of the Tribeca property to luxury residential condominiums and will also acquire one of the five sub-basement levels of the building near the under-construction One World Trade Center tower.
The brick-clad 140 West St. is one of the most historically significant skyscrapers in the world. Built in 1927 to house the headquarters for the old New York Telephone, the 32-story building is considered by architects and urban historians to be the first skyscraper designed in the Art Deco style.
Now 1.78 million square feet, it was most recently renovated in 2004 after sustaining heavy damage from falling debris in the collapse of the Twin Towers and the nearly 7 World Trade Center in the Sept 11, 2001 attacks.
Verizon will keep about 60% of the building, floors two through 10, and four of the sub-basement levels, which contains switching equipment and administrative offices.
It's the latest in a series of partial-building sales executed by Verizon. The company previously sold portions of its property at 375 Pearl St. and headquarters buildings at 1095 Ave. of the Americas in Midtown Manhattan.
Verizon will return its headquarters to the space it still owns in the latter, while about 600 employees will retain the company's presence in lower Manhattan the lower floors of 140 West St. post-sale.
John M. Vazquez, Verizon senior vice president of global real estate, said the move will allow the conversion of the West Street building from a traditional telecom hub to a partially residential "multipurpose building that will contribute meaningfully to the city’s long-term vision for a vibrant World Trade Center neighborhood."
Benjamin Shaoul, president of Magnum Real Estate Group, added that Magnum plans to duplicate the success Walker Tower, the condominium project developed above the Chelsea Verizon building.
"Our aim is to convert 140 West Street into another world-class residential property," Shaoul said.
A Cushman & Wakefield team led by Executive Vice Chairman Josh Kuriloff, along with a New York capital markets team of Nat Rockett, Helen Hwang, Karen Wiedenmann and Brian Szczapa, marketed the space to real estate developers on behalf of Verizon.