Photo: epicharmus via Flickr
What triple dip?The New York Fed announced today it paid $207.5 million to purchase the building at 33 Maiden Lane in Lower Manhattan, where it is the primary tenant.
At $357 per square foot (for 558,659 sq. ft.), the Fed got a pretty decent deal, according to Stephen Sunderland, owner of Optimal Spaces Inc., a commercial real estate broker in New York City. The amount is below replacement cost, or what it would cost if a developer were building there from scratch, he said.
The Fed has been the primary occupant of the 27-story building since 1998, accounting for about 75 per cent of the space. Approximately 1,100 Fed employees work there. The building was completed in 1984.
The official owner will be Maiden & Nassau LLC, which will be wholly owned by the Fed.
The purchase decision was approved by the New York Fed’s board of directors as well as by the Board of Governors of the Federal Reserve System.