Pacific Oak Strategic Opportunity REIT Inc., through a joint venture with Savanna, announced that it has executed a lease for 640,000 square feet of office space at 110 William Street in downtown Manhattan. According to the company, the lease is the largest in New York City to date in 2023.
Pacific Oak says the 20-year deal is with an AA-rated New York City agency and will bring the occupancy of the building to essentially 100%.
“This is a momentous deal for New York City that took the collective efforts of our lenders, brokers, and advisory team partners to bring to a successful completion,” said Keith Hall, chief executive officer of Pacific Oak Strategic Opportunity REIT Inc. “Office buildings are vital to the New York economy and major deals like this infuse tax revenue and support local operating businesses and real estate valuations that benefit all.”
According to the company, the new tenant will take occupancy gradually based on space completion and delivery schedule. Additionally, the recapitalization has significantly increased the REIT’s common equity ownership of 110 William.
“This is an excellent outcome that further enhances the durability of the REIT’s income and net asset value,” said Peter McMillan, president of Pacific Oak Strategic Opportunity REIT Inc. “Deals like this are reflective of the long-term commitment to office space that remains in one of the world’s premier markets. We continue to be optimistic about opportunities we see to create value for our shareholders.”
110 William is a 32-story, 928,000-square-foot office tower located at the corner of William and John Streets in downtown Manhattan’s Financial District. The property was originally built in 1960 and underwent significant renovations in 2000 involving new elevators, main lobby and common corridors. Additionally, a comprehensive lobby restoration including new ceilings, pendant lighting, a new concierge desk, a new security system and refinishing of the building façade was recently completed.
“We are thrilled to welcome our new tenant to 110 William Street,” said Brian Reiver with Savanna. “This agency provides a critical service throughout New York City, and we could not be prouder to partner with them to create a purpose-built space that allows this vital government agency to best serve its constituency and continue its important work. This transaction fully stabilizes 110 William and reflects the ‘partnership’ effort required to complete a transaction of this scale and significance.”
Pacific Oak Strategic Opportunity REIT invests in opportunistic real estate and other real estate-related investments and manages a portfolio valued in excess of $2 billion comprised primarily of office, land, apartment, single-family rental and hotel assets.