The office building was purchased by KBS in May 2000 for $60 million, Charlie Valentino tells GlobeSt.com. In the seven years the firm owned the facility it conducted extensive renovations, including restoration of the lobby to its original design with vaulted ceilings, elevator modernization, almost all new HVAC units, and a number of the floors gutted and rebuilt for the tenants.
Valentino says KBS began marketing the property as the firm's typical four- to seven-year hold period was coming to an end. "We had accomplished what we had set out to do in terms of renovations, and we were looking to redeploy the capital," Valentino says. But before the marketing campaign was fully launched, Moinian had the property under contract.
The Midtown South building is 99% occupied with a variety of tenants, including Data Monitor Ltd. which recently subleased one of the two floors it has in the building to Starbucks, Valentino says. While KBS has not negotiated a lease recently for the property, Valentino says rental rates would average $50 per sf in the facility.
Moinian also has other Manhattan projects including the development of the 57-story W Hotel New York-Downtown. The projected to be built at 123 Washington St. will contain 217 hotel rooms as well as 222 residential units and is expected to open in 2008.
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