Relevant Experience: Sale of Non-Core Assets for Financial Institutions
JPMorgan Chase 15 Broad Street, New York, NY
JPMorgan Chase retained Newmark Knight Frank to sell its former 1,000,000-square-foot headquarters at 15 Broad Street. The building, once designated as the site for a new NY Stock Exchange but long vacant at the time of the transaction, was sold to the partnership of Africa Israel JV Boymelgreen Developers (Boymelgreen).
At the time, Boymelgreen was known as a small local developer and Africa Israel, although a giant public company, was a foreign concern and unknown in the US. Although their bid was far higher than the competition, Newmark Knight Frank’s advisory team interfaced with senior bank executives to be sure that the capacity of the bidder to perform was verified.
This $100 million, post-9/11 acquisition met with many dissenters in the development community as being risky, yet went on to become the most successful financial center residential conversion to date with condos by Philippe Starck and retailer Hermes of Paris on site.
Relevant Experience: Sale of Bank Branches for Financial Instutitions
Citibank Retail Portfolio I and II Multiple Locations, Greater New York Metropolitan Area
Newmark Knight Frank advised Citibank (Citi) on the structuring of the sale and leaseback of retail branch portfolios in the Greater New York Metropolitan Area in conjunction with Citi’s plan to reduce real estate holdings and redeploy capital resources into operating businesses.
The first transaction of 23 branches was valued at $139.5 million. The sale to a foreign buyer was completed at an aggressive capitalization rate, notwithstanding capital market turmoil, senior management restructuring and credit/equity market downgrades of Citigroup.
The second sale of 47 branches to an institutional investor was valued at $87.5 million. Through a competitive bidding process, Newmark Knight Frank was able to maximize proceeds at an extraordinarily low capitalization rate at the height of the market.
The transactions enabled Citi to maintain long-term occupancy and control of branch operations.