Joshua Zamir, managing principal with Capstone, explains that itis exciting to close this transaction in such a "difficultfinancing environment." Capstone's Fund I, which invests inunderperforming commercial properties, recently invested in the1.1-million-sf 14 Wall St. in a joint venture with the CarlyleGroup. Capstone bought the landmark tower last year and has signedleases for almost 200,000 sf since its purchase including therecent 36,400-sf lease to NYU Medical center. Other recent projectinvestments include 40 Broad St., 132 W. 31st St. and 44 WallSt.

Following the path of Capstone's property at 14 Wall St., thecompany plans to build on previous improvements by upgrading 156William St. to create a luxury office building offering first classtenant services, amenities and security. Capstone has hiredarchitectural firm Gensler Architects and is currently consideringdesigns for a new lobby, building facade, curtain wall andmechanical capital improvements. Ghadamian notes that the companyis still analyzing design and budget as of now in regards toimprovements, so he couldn't not determine a construction cost orstart date at this time.

Ghadamian explains to GlobeSt.com that Capstone was attracted tothe property for the upside potential and also for the low cost perfoot--in that it is very difficult to find anything less than $250per sf. Capstone was also attracted to the fact that it is twoblocks away from the new Fulton Street Transit Station.