NEW YORK CITY-As Lower Manhattan residential activity continues to rise, an International-based firm has acquired a downtown office building that will be converted into high-end condominiums. Izaki Group Investments USA has acquired 93 Worth St. from World Wide Holdings for $49.7 million, according to Grubb & Ellis, which represented World Wide in the deal.

Following renovations and restorations to the 87-year-old structure, the 165,000-square-foot building will feature 96-units and new amenities, such as on-site security, a gym, children’s playroom and lounge. “This office building was positioned as a redevelopment opportunity throughout the sale process, and with the need for residential condominiums in New York City’s TriBeCa area to support growing demand, the sale was a great fit for the buyer and seller,” says Yoav Oelsner, an executive vice president at Grubb & Ellis, in a statement following the closing on Monday. “Adding to its attractiveness for residential repositioning, the building is located in an area surrounded by a wide variety of amenities for future tenants.”

The 12-story building is currently home to the New York City Department of Health and Mental Hygiene, the New York City Correction Officers' Benevolent Association and 12,000 square feet of ground-floor retail, which once featured value fashion retailer Strawberry. According to Real Capital Analytics, the city’s DHMH will vacate the building next year.

The deal comes at a time where luxury condominiums and rentals continue to dominate the inventory Downtown. Lower Manhattan’s residential vacancy rate is currently at a low of 0.7%, and has stayed below 2.5% for the last 10 years, according to the Alliance for Downtown New York. Oelsner describes the sale as the “perfect canvas” for condominium redevelopment, given a market with a dearth of new condo projects and a TriBeCa location. “We expect that by the time IGI completes the repositioning of this asset, it will be one of the most desire conversion projects to hit the market in some time,” he adds.

Grubb & Ellis’ executive VPs Vincent Carrega and Charles Kingsley and associate Jason Meister also represented World Wide Holdings in the sale. The property is located near Foley Square, the Federal Courthouse, New York Law School, the County Clerk of New York and other municipal and educational institutions.