Deutsche Bank has agreed to sell New York’s Worldwide Plaza to real estate investment firms RCG Longview and George Comfort & Sons for $605 million, a person familiar with the matter has confirmed.
The bank pulled out of an original deal with the two firms last month after Deutsche Bank’s board of directors in Germany rejected the way the transaction was structured. Sources told PERE at the time that the deal – which would have seen Deustche Bank retain a stake in the property as a joint venture partner – would have left the bank with too much equity risk.
However, the bank has now reached an agreement with RCG and the Comfort team, which will see the two firms buy the property outright for $605 million or $345 a square foot, the person said. RCG and Comfort will inject $130 million of equity into the transaction, while Deutsche Bank will provide around $470 million in financing.
The new deal was agreed last Friday, with news of the transaction breaking yesterday. The deal is expected to close later this month. Deutsche Bank declined to comment, while RCG and George Comfort & Sons were unavailable for comment at press time.
Deutsche Bank took over the 1.8 million-square-foot Worldwide Plaza and six other landmark properties after previous owner and real estate mogul Harry Macklowe defaulted on the debt that financed his $7 billion acquisition of the buildings. The Worldwide Plaza is the last asset to be sold by the bank.