Verizon Communications Inc, the second largest phone company of the United States has reportedly entered into an agreement to sell a part of its New York headquarters at 140 West St. in lower Manhattan to Magnum Real Estate Group, a condo developing firm for about $274 million, according to several news sources.
Verizon is selling the top 21 floors of the total 32 levels. The telecom firm will be shifting some 500 of its employees to a building on 1095 Sixth Avenue. The company is selling off most of its assets in order to consolidate all its operations. It recently sold stake in 375 Pearl Street and 1095 Sixth Ave also while retaining some ownership in the structures, reports Commercial Observer.
"We are pleased to continue to move forward with the conversion of our building on West Street from a traditional telecommunications hub to a multipurpose building that will contribute meaningfully to the city's long-term vision for a vibrant World Trade Center neighborhood. We believe that with our co-owners, Magnum Real Estate Group, we will stand out in what already has become a desirable tourist and residential center for New York City," John Vazquez, senior vice president of global real estate at Verizon, said in a statement.
Verizon is apparently bolstering its finances to buy Vodafone's 45 percent stakes in the Verizon Wireless Joint Venture. The stakes are worth $130 million. It also recently sold $49 billion worth bonds, breaking records and creating frenzy across Wall Street, reports the Wall Street Journal.
Meanwhile, Magnum is planning to convert the telecom floors into prime residential space. According to Businessweek, the company is planning to convert the telecom space into 175, three bed- or more condominiums. The residential space will start from the eleventh floor to end at the 32nd level. It will have a pool, a gym and playrooms as well. Prices of the apartments will range from $3.2 million for a three bedroom unit to $7 million for a five bedroom one.
Benjamin Shaoul, president of Magnum Real Estate Group, added that Magnum plans to make this converted development as successful as the residential project developed above the Chelsea Verizon building.
"Our aim is to convert 140 West Street into another world-class residential property," Shaoul said to CoStar.com.
