Brooklyn-based developer Bushburg, led by Joseph Hoffman, is set to expand its real estate footprint into Manhattan with the acquisition of 80 Pine Street. The company is in contract to purchase the 1.2 million-square-foot office tower from the Rudin family for approximately $160 million, according to sources familiar with the deal. This move signals a significant step in Bushburg’s growth and underscores the growing trend of office-to-residential conversions in New York City’s Financial District.
The 40-story building at 80 Pine Street Manhattan, a fixture of the Financial District skyline since the 1960s, presents a prime opportunity for residential redevelopment. The property has faced substantial vacancy challenges, particularly after insurance giant AIG vacated 800,000 square feet in 2021. This vacancy, coupled with the current high demand for residential apartments in Manhattan, makes 80 Pine Street an ideal candidate for conversion. Rudin Management, who put the building on the market in the fall, and Bushburg have both declined to comment on the pending transaction. Eastdil Secured, which brokered the deal, also declined to comment.
For Bushburg, primarily known for its residential developments in Brooklyn’s northern neighborhoods and more recently in areas like Jersey City and Miami, 80 Pine Street Manhattan represents their first foray into the Manhattan market. The company has built a reputation on identifying and capitalizing on emerging residential trends, and their interest in 80 Pine Street highlights the increasing attractiveness of office conversion projects.
The potential transformation of 80 Pine Street is part of a broader wave of office-to-residential conversions sweeping Manhattan, particularly the Financial District. Outdated office buildings are struggling to attract tenants in the modern work landscape, while the demand for housing in Manhattan remains robust. This economic dynamic is fueling the conversion trend, with several large-scale projects already underway.
Notably, GFP Real Estate, Metro Loft, and Rockwood Capital are collaborating on the conversion of 25 Water Street, another Financial District office building, into 1,300 apartments. Metro Loft, led by Nathan Berman, is also involved in converting Pfizer’s former Midtown headquarters and exploring another conversion at 111 Wall Street. David Werner, another active player in this space, is also reportedly acquiring 100 Wall Street, potentially for residential conversion.
This surge in office conversion projects is further supported by recent legislative changes. New York state lawmakers have approved incentives to encourage the conversion of underutilized office buildings. The Adams administration is also actively promoting and streamlining the conversion process, aiming to increase the number of eligible properties and expedite approvals. The acquisition of 80 Pine Street Manhattan by Bushburg is a clear indication that these incentives and market conditions are beginning to translate into tangible real estate transactions, reshaping the landscape of downtown Manhattan.
