100 William Street

Bushburg's investment thesis focuses on value-add opportunities through adaptive reuse of under-utilized properties. Their successful track record in similar projects, such as the conversion of 80 Pine Street, positions them well to execute this strategy effectively.

This acquisition signals a strong recovery and confidence in the residential market within New York City, particularly in areas like the Financial District that are evolving into mixed-use neighborhoods. The pricing reflects a strategic entry point into a market poised for growth, especially compared to pre-COVID levels where cap rates were lower.

The cap rate of 6.65% is favorable compared to the average cap rate for office properties in New York City, which typically ranges from 5.5% to 7.5%. This spread indicates a reasonable risk-adjusted return given the ongoing transition of the asset from office to residential use, which is generally perceived as a higher-risk investment.

Given the strong demand for residential units in the Financial District, asking rents are projected to grow by approximately 3-5% annually. Recent trends show that residential rents in the area have rebounded post-pandemic, further supporting this projection.

The project presents significant value-add potential through the conversion of the existing office space into modern residential apartments. The planned renovations will enhance the building's appeal and align it with contemporary urban living standards, attracting a diverse tenant base.