GFP Real Estate and Northwind Group have agreed to buy 7 Hanover from Guardian Life Insurance Company of America for $308.5 million.
Guardian has had its headquarters in the 29-story building, which is in lower Manhattan, since 1999.
The life, annuity and disability issuer plans to move its headquarters farther north, and to the west, to Hudson Yards.
Cushman & Wakefield’s Doug Harmon and Adam Spies brokered the 7 Hanover deal. The parties expect to complete the transaction in September 2019.
In a related transaction, NYC Health + Hospitals, a public health care system, has agreed to lease 526,552 square feet of office space, on 14 floors, at 7 Hanover from GFP and Northwind.
NYC Health + Hospitals says the 25-year, $758 million lease will increase its efficiency and reduce its real estate costs by $16.5 million in five years and by $203.1 million over the lifetime of the lease.
NYC Health + Hospitals will use the 7 Hanover space to replace the six separate locations where its 2,600 administrative employees now work, and reduce its overall real estate footprint by 20%.
Newmark Knight Frank’s Brian Waterman and Ira Rovitz represented NYC Health + Hospital in securing the lease.
The project is the second major acquisition and redevelopment for GFP and Northwind. In 2014, they acquired, renovated and leased 40 Exchange Place, refinancing the property last year.
— Read Guardian Starts Moving 300 Workers to Old Bell Labs Site, on ThinkAdvisor.