American International Group's New York headquarters tower and a nearby AIG skyscraper have been bought by the investment and development firm Youngwoo & Associates (YWA) and a Korean bank, a real estate brokerage said.
Los Angeles-based CB, Richard Ellis, said the AIG headquarters at 70 Pine Street and 72 Wall Street will be acquired by Korea's Kumho Investment Bank (Kumho) and YWA in New York for an undisclosed price.
In total, the two AIG properties consist of 1.4 million rentable square feet in the heart of Manhattan's Financial District. The Pine Street building is 66 stories.
YWA and a Kumho consortium went under contract on the buildings last week after a competitive sales process arranged by CB Richard Ellis, the commercial brokerage said.
The acquisition, CB Richard Ellis said, is expected to draw participation from a group of international financial firms and represents a major strategic initiative by the YWA/Kumho partnership to establish an investment program focused on Manhattan real estate opportunities.
CB Richard Ellis added the move symbolizes a broader commitment by Korean institutions to overseas investment and Kumho has taken a lead role by recently expanding its activities, with a concentration on New York.
"The investment is based on our optimistic view on the future of Wall Street, New York City and the U.S. financial services industry," said a statement from Y.C. Kim, director of Kumho.
YWA views the transaction as an important one, saying it is "a key stepping stone in our long-range plan to establish a major presence for Korean institutions in the U.S. property and capital markets," added Greg Carney, a YWA partner.
AIG would make no comment.
Closing of the sale of the 70 Pine Street headquarters and 72 Wall Street office is expected at the end of the summer. AIG is at work on plans to move its employees into buildings it owns at 180 Maiden Lane and 175 Water Street, NU has learned.
Under the sale agreement, AIG will have the right to occupy 72 Wall St. until the end of 2009, and 70 Pine St. until the end of 2010. The two buildings had been up for sale for six months.
AIG, since it began selling properties and businesses to pay back billions in taxpayer bailout monies, has announced between $5 billion and $6 billion in deals. The transactions have involved companies and real estate throughout the world, including Argentina, Japan and the United Kingdom.
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