(Bloomberg) — Brookfield Asset Management Inc. is exploring a sale of a stake in One Manhattan West, an office tower constructed as part of its development project in the Hudson Yards area, according to people with knowledge of the matter.
The firm is soliciting interest from potential bidders in a share of the property that would value it at about $2.8 billion, said one of the people, requesting anonymity because the talks are private. Cushman & Wakefield is the brokerage advising Brookfield, some of the people said.
Representatives from Brookfield and Cushman declined to comment.
Brookfield said in August 2020 that it borrowed $1.8 billion, including $1.5 billion in CMBS loans, to refinance the skyscraper. DBRS Morningstar said at the time that long-term, institutional tenancy “should largely shield the property from any short- or medium-term dislocations in the Manhattan office market resulting from the ongoing Covid-19 pandemic.”
The pandemic has hit the New York office market hard, but leasing and deals have been on the rise since the city began to reopen. Google announced plans to buy a Manhattan office it already leases for $2.1 billion in September, and major tenants including Facebook and Microsoft Corp. have committed to more space in the city.
One Manhattan West is one of six buildings in a mixed-use complex that spans from 31st to 33rd streets between Ninth and 10th avenues. Brookfield is developing the project in partnership with Qatar Investment Authority.
Tenants at One Manhattan West include the law firm Skadden, Arps, Slate, Meagher & Flom and the National Hockey League.
(Adds background on New York City’s office market in fifth paragraph.)
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