Posted on 03 Jun 2009
American International Group Inc. (AIG) agreed to sell its New York headquarters and an adjacent office building, two people familiar with the matter said.
An agreement has been reached for 70 Pine St. and 72 Wall St. in lower Manhattan, said the people, who declined to be identified because the talks are private. The price and the buyer weren’t disclosed.
AIG is selling property and businesses after being bailed out four times by the federal government. The insurer last month agreed to sell its Japanese headquarters to Nippon Life Insurance Co. for $1.2 billion. AIG also sold a 235,000 square-foot office building in Ridgefield Park, New Jersey.
“This is going to a transaction for someone who’s not just a money buyer but someone who really understands how to develop property,” said Mark Weiss, vice chairman of Newmark Knight Frank, a New York-based property broker which represented a bidder for the New York City buildings.
The buyers of the Manhattan buildings may convert them into offices, apartments or hotel rooms, he said. The buildings are connected by a skywalk.
AIG will continue to occupy 70 Pine St. until the end of 2010, the people said.
The 66-story Pine Street headquarters was completed in 1932 and has about 775,000 square feet, according to Emporis.com, a property database. At 952 feet (290 meters), the tower is New York’s fifth-tallest building, Emporis said. The Wall Street building is 16 stories and has about 279,000 square feet, according to MrOfficespace.com.
David Monfried, an AIG spokesman, didn’t return a call for comment.
AIG sold the New Jersey building to KABR Real Estate Investment Partners LLC, a real estate firm founded by former Knight Securities LP Chief Executive Officer Kenneth Pasternak, according to a statement today from KABR. The price wasn’t disclosed.