Tower at 111 Wall Street epitomizes crisis of NYC’s commercial real-estate market

The operation astatine 111 Wall St. epitomizes the situation that faces the Manhattan commercialized real-estate marketplace — and the metropolis itself.

The 1960s-vintage operation emerged from its ugly-duckling archetypal quality arsenic a born-again downtown gem aft a top-to-bottom redesign.

But the timing couldn’t beryllium worse for its owners, who invested adjacent to a half-billion dollars and look a illness successful request for bureau space.

Nightingale Group and Wafra Capital Partners bought a $175 cardinal semipermanent leasehold connected the 25-story, 1.2 million-square-foot operation successful 2019 erstwhile Citigroup moved out.

It seemed similar a sound, diamond-in-the-rough concern erstwhile fiscal and media companies were looking for lower-priced but viable alternatives to spectacular, brand-new towers — and cipher had yet heard of the coronavirus oregon work-from-home.

The owners boldly embarked connected a $100 cardinal modernization and architecturally distinguished “repositioning” that included an all-new, bronze-trimmed curtain-glass facade and spent $220 cardinal much for the onshore underneath the operation successful 2021.

But the recently gleaming profile, East River views, awesome tenants’ amenities and state-of-the-art electronics and mechanical systems mightiness not beryllium capable to lure tenants to 111 Wall erstwhile downtown is limping nether the city’s highest bureau vacancy complaint of 21%.

Nightingale Group and Wafra Capital Partners bought a $175 cardinal semipermanent leasehold connected the 25-story, 1.2 million-square-foot operation astatine 111 Wall St. successful 2019 erstwhile Citigroup moved out.Google Maps

The gathering moreover indispensable vie with adjacent properties, specified arsenic 60 Wall St., that are besides bare oregon near-empty.

“I don’t cognize of immoderate institution that’s moving to the country betwixt Water Street and the river,” 1 broker said.

“I privation them well.”

The communicative of 111 Wall St. repeats crossed the city.

Whether they are semipermanent owners oregon caller investors, they’re holding onto buildings and sweating retired the large question — does anyone privation to determination in?