The Dermot Co. has partnered with Dutch pension fund service provider PGGM to acquire a luxury apartment building in the heart of New York City’s Financial District.
The 57-story, 767-unit 20 Exchange Place, which was originally built as the headquarters of City Bank-Farmers Trust, was purchased from a partnership led by DTH Capital in an off-market transaction. According to several news outlets, the reported purchase price was $370 million. This is the seventh asset that Dermot has bought in partnership with PGGM.
“This rare opportunity, which came to us through an existing relationship, has enabled us to acquire an iconic property at a highly attractive basis that is significantly below replacement cost,” said Andrew Levison, partner and chief operating officer for Dermot, a vertically integrated multifamily investment manager, owner, and operator.
According to Levison, DTH Capital executed an office-to-multifamily conversion of the iconic building starting nearly two decades ago. In 2004, the building was acquired as a joint venture by Metro Loft Management president Nathan Berman, Yaron Bruckner, and Eastbridge N.V., the major shareholder in DTH Capital, for $152 million. The office-to-residential conversion was featured in Multifamily Executive in September 2009. The Financial District has become a highly desirable neighborhood, seeing a boost in public and private investment over the past few decades. It also is home to many office building conversions, including new projects that are underway.
“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. We are excited to bring our exclusive management and amenity program to the residents of 20 Exchange Place,” Levison noted.
In addition to being located in a vibrant neighborhood, the ground-floor and cellar retail space is occupied by Emursive, an immersive theater company that recently debuted “Life and Trust.” The building also features historical architecture finishes on both the exterior and interior spaces, a fitness center, a resident lounge, and an outdoor terrace.
Dermot plans to enhance the long-term value of the building through elevating interiors and amenities. 20 Exchange Place also will offer Dermot Ignite, a signature lifestyle and social initiative that encourages resident connection and engagement. The program includes access to resources, curated events, wellness programs, and networking opportunities for members.
Based in New York City, Dermot owns, holds investments in, or manages over 7,500 apartments.
