Deutsche Bank Finally Sells Worldwide Plaza for $600M

A deal to purchase Worldwide Plaza in NYC that initially fell through last month has been finalized and George Comfort & Sons is the new owner of the property, a transaction valued at roughly $600 million. The original proposed purchase had the owner, Deutsche Bank, retaining a stake in the tower and providing financing, but DB management terminated the first contract with Comfort-RCG "through no fault of the purchaser" on June 23, making the property once again available for bid according to a New York Post article.

But Comfort-RCG returned to the table and have squared away a deal for the 50-story tower that's equivalent to $300 per square foot, and includes roughly $130 million in equity from the buyers and $470 million mortgage from DB. The Wall Street Journal notes that while this is the largest deal in the NYC market to date this year, it could spell trouble for the Manhattan office market. When Harry Macklowe acquired the property in February of 2007 the purchase was listed at $1.74 billion -- this sale marks a $1.14 billion drop in a little over two years, which could lead to a dip in rents for a new landlord able to make competitive cuts. "At that price, [Comfort] can now afford to undercut the whole midtown market," said real-estate attorney Steven Schlesinger of Jaspan Schlesinger LLP, who wasn't involved in the transaction.

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