Developer Silverstein Buys Downtown NYC Apartment Tower for $248 Million

(Bloomberg) -- New York-based developer Silverstein Properties bought a lower Manhattan apartment tower, its first purchase of an existing residential building in the city.

The firm paid $248 million for 116 John St., a converted office tower in the Financial District, according to a statement Wednesday. The seller was an affiliate of Metro Loft Management LLC.

Demand for Manhattan rentals has bounced back after vacancy rates soared during the depths of the pandemic. Leasing has picked up over the past year, and rents surged the most on record last month.  

While the deal is Silverstein’s first acquisition of a New York apartment building, the firm has developed other residential towers, including Four Seasons Downtown at 30 Park Place and rental properties on Manhattan’s far west side. The John Street building is not far from the World Trade Center site, where Silverstein has developed office skyscrapers.

“Downtown is our home, and I am proud to have been part of this neighborhood’s incredible transformation and renewal over the past 20 years,” Chairman Larry Silverstein said in the statement. 

Built as an office tower in 1931, the 35-story building has 416 apartments. The bottom floors are leased to Sonder, a hospitality startup that leases out short-term rentals. 

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