Silverstein Properties Acquires 116 John Street
Silverstein Properties, a private real estate developer, owner, and property manager, closed on the acquisition of 116 John Street, a 416-unit multifamily property in Lower Manhattan. Silverstein purchased the building from an affiliate of Metro Loft Management, LLC for $247.5million.
This transaction marks the company’s first acquisition of a residential property in New York City. Silverstein Properties developed and opened the Four Seasons Downtown at 30 Park Place in 2016; and developed, owns and manages two residential rental buildings on 42nd Street – Silver Towers and River Place – with a total of 2,280 units, including 548 affordable housing apartments. The firm is currently developing over 6,000 residential units in Astoria, Queens, Downtown Manhattan, Jersey City, Las Vegas and Seattle.
“I am thrilled to add this outstanding property to our portfolio,” said Larry A. Silverstein, Chairman of Silverstein Properties. “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. We are excited to provide the residents of 116 John Street with exceptional services and look forward to building an inspiring community in the building.”
Originally constructed as an Art Deco office tower in 1931, 116 John Street was converted to residential use by Metro Loft in 2013. The 35-story, 266,000 square foot building is situated on a full block front from John Street to Platt Street along Pearl Street. Apartments feature 11-foot ceiling heights and private outdoor terraces in select units. Amenities include a fitness center, landscaped roof deck and tenant lounge. The bottom floors (floors 2-14) are leased to Sonder, a leading next-generation hospitality company that is redefining the guest experience through technology and design.
“What was once the Financial District is now a vibrant, 24/7 live-work-play-stay neighborhood,” said David Marks, Head of Acquisitions for Silverstein Properties. “Downtown has benefitted from billions in public and private investments, major transportation upgrades, and a broadening array of new retail amenities. It is also home to some of the most successful, creative companies in the country, and many people who live in the neighborhood walk to work. Downtown is also one of the most popular tourist destinations in New York, and we are delighted to have Sonder in the building, and look forward to building a strong relationship with the company and its guests.”
“Sonder is renowned for our tech-enabled guest experience, inspiring design in our spaces as well as a consistency of quality and value,” said Martin Picard, Co-Founder and Global Head of Real Estate at Sonder. “Our units at 116 John Street, known as Sonder One Platt, deliver on all of these aspects and we look forward to working closely with Silverstein Properties. Our model is highly adaptable, and able to successfully respond to emerging and evolving travel preferences. We appreciate Silverstein’s partnership in our vision of future-forward hospitality.”
Silverstein plans to implement a capital improvement program at 116 John Street to renovate apartments and upgrade common areas. The building will be branded under Silverstein’s hospitality platform – Inspire – that will offer residents a host of new services, amenities and social and wellness programming.
“We are delighted to bring Inspire to the residents of 116 John Street,” said Yael Ron, Head of Global Hospitality & General Manager of Residential Properties. “Through our new and inspired management model, we will provide our customers with greater ease of living, and a sense of community through technology, hospitality services, content and programming.”
Khashy Eyn from Platinum Properties and Lenny Sporn helped broker the off-market transaction for Silverstein Properties. Gary Phillips and Will Silverman from Eastdil Secured represented Metro Loft Management, LLC.
Silverstein’s acquisition of 116 John Street follows the company’s purchase of US Bank Tower in Los Angeles in 2020 and 1735 Market Street in Philadelphia in 2019; as well as the opening of 3 World Trade Center in New York in 2018, each premier office buildings in their respective cities.
