The $150M Renovation At 28 Liberty Will Be Done In 2018, And Tenants Are Already Lining Up
Interest in the remaining office and retail space at 28 Liberty in the Financial District has reached a fever pitch, as long-awaited renovations at the iconic site enter the home stretch. To get a sense of what we can expect in the months ahead, we spoke with Fosun, which is sponsoring and hosting our 6th Annual NYC Retail Forum on March 15, hosted in 28 Liberty.
Tom Costanzo, head of leasing at Fosun Property Holdings, says the firm “currently has more deals in motion than there is space available,” though he declined to comment on the specifics of any of the deals.
Fosun, a massive Chinese investment firm, bought 28 Liberty from JPMorgan Chase back in 2013 for $725M, and in 2015 embarked on a top-to-bottom reposition project.
When it’s finished in early 2018, 28 Liberty will have 200k SF of lower floor retail space, brand-new elevators and other infrastructure throughout, a revamped outdoor plaza, and an exclusive catering and event space on the 60th floor.
All told the renovations will cost about $150M to $200M, Tom says.
Three major cinema operators are reportedly in talks with Fosun to open a screening room-type theater complex in 28 Liberty’s retail section.
No other candidates for the retail section have been announced.
Restaurateur Danny Meyer, creator of the Gramercy Tavern and Union Square Café, will be running the catering and events space on the 60th floor, which which will have a bar and lounge component and be open to the public.
Of the roughly 2M SF of office space at the site, JPMorgan Chase continues to occupy about 300k SF, along with longtime tenant Milbank, Tweed, Hadley & McCloy, which takes up about 300k SF.
Ironshore, a US casualty and property insurance firm, signed a 15-year lease for 100k SF last spring.
Fosun and four other tenants take up a total of roughly 400k SF, leaving 800k SF open to new tenants.
It's been reported elsewhere, and market sources confirmed, that asking rents for the office space were between $50/SF and $80/SF, while retail is in the range of roughly $400/SF for the ground floor and $100/SF for below-grade levels.
Tom (snapped above to the right, along with Fosun managing director Erik Horvat), says that “On the leasing front, we’re seeing some of the best activity in lower Manhattan."
To learn about 28 Liberty and current retail trends in NYC more generally, be sure to check out our 6th Annual NYC Retail Forum, which will be held at 28 Liberty on March 15.