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Paramount, Morgan Stanley shop majority stake at 60 Wall St.

1.6M sf tower could fetch $750 psf

60 Wall Street in the Financial District
60 Wall Street in the Financial District

Paramount Group and Morgan Stanley are shopping a majority stake in downtown office tower 60 Wall Street.

The passive stake in the 1.6-million-square-foot trophy office tower could go for $750 per square foot, according to the New York Post.

Tenant Deutsche Bank, which leases the building under a 2007 sale-leaseback deal with Paramount and Morgan Stanley that’s worth $1.2 billion, has six years left on its lease. HFF’s [TRDataCustom] Andrew Scandalios is marketing the offering.

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Paramount currently owns 62.3 percent of the tower and would sell part of its interest — though remain a general partner — according to Real Estate Alert. Morgan Stanley, through its Real Estate Special Situations Fund III, would sell its entire 37.7 percent stake.

Although Deutsche Bank’s lease contains the “right of first offer” to buy the building, that’s not a sure bet. The bank is currently in the market for 1 million square feet of space as it considers whether to stay or move when its lease expires.

The tower’s net operating income will be $66 million this year, or $41 per square foot, according to REA. Its assessments will top $20.5 million or $12 per square foot.

The 50-story tower was built in 1988 for JPMorgan and it was sold in 2001 for $610 million as part of the bank’s merger with Chase Manhattan. [NYP]E.B. Solomont

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