OfficeClosedacquisition

291 Broadway

291 Broadway, New York, NY·Dec 26, 2025, 11:02 PM

Deal Size

$33.0M

Cap Rate

Est. 6.65%

$/SF

$260

Size

127K SF

Occupancy

—

Market SignalBullish (moderate/10)

The acquisition of 291 Broadway at a cap rate of 6.65% presents a compelling opportunity given its location in the Tribeca neighborhood of New York City, a market characterized by constrained supply and strong demand. The property's historic significance, combined with its proximity to major transportation hubs, enhances its appeal. However, the lack of disclosed occupancy and WALT data introduces some uncertainty. The deal's financing by Northwind Group indicates confidence in the property's cash flow and potential for repositioning, aligning with William Macklowe Company's strategic objectives.

Buyer Strategy

William Macklowe Company appears to pursue a value-add strategy, leveraging the property's historic character and location to enhance its appeal and cash flow. Their track record suggests a focus on repositioning assets for higher returns.

Seller Motivation

Seller details are not disclosed, but the sale may align with portfolio rebalancing or capital recycling strategies, given the property's age and potential need for modernization.

Market Signal

This transaction signals continued confidence in the NYC office market, particularly for well-located historic properties. The pricing reflects a post-COVID recovery in demand for unique office spaces, with institutional buyers like William Macklowe Company leading the charge.

Financing

Loan

$33.0M

Lender

Northwind Group

Parties

BuyerWilliam Macklowe Company →

Broker

Newmark

Location Analysis

Gateway Market

Financial services, media, and technology sectors are prominent in NYC, with major employers like Goldman Sachs, NBCUniversal, and Google having significant presences.

New York City, particularly Tribeca, is known for its high-income residents and strong demand for office space. The area's population growth is stable, with a trend towards high-income professionals and businesses seeking proximity to financial and creative sectors.

Tribeca's office market includes comparable historic buildings with modern amenities. The area's limited new supply and high demand for unique office spaces make 291 Broadway competitive.

There is limited new office development in Tribeca, which supports the value of existing properties like 291 Broadway. The constrained supply is a positive factor for maintaining rental rates and occupancy.

Cap Rate Context

The cap rate of 6.65% is attractive compared to typical NYC office cap rates, which often range lower due to high demand and limited supply. This suggests a favorable risk-adjusted return, particularly given the property's location and historic character.

Rent Growth

With Tribeca's strong demand and limited supply, rent growth is expected to be stable. The property's location near major transit hubs supports positive rental trajectories.

Value-Add

The property's historic nature and adaptable layout present opportunities for repositioning to attract higher-paying tenants. Potential upgrades could capitalize on below-market rents and improve occupancy.

Tenant Assessment

Mixed

Concentration

The property benefits from a diverse tenant base, reducing single-tenant risk and enhancing income stability.

Market Comparables

25 Elm Place

New York City · Office · acquisition

$40.0M

Unnamed

Manhattan · Office · acquisition

$21.0M6.65% cap

168 Canal Street