Delicious irony: AIG has to sell its home

Posted Jun 5th 2009 3:30PM by Bruce Watson
Filed under: Housing, Financial Crisis

In a story that is sure to fill many American's with a warm sense of satisfaction, American International Group (AIG) has agreed to sell two of its buildings in lower Manhattan. Although the deal hasn't been made public yet, an agreement has, apparently, been reached between buyer and seller.

The irony continues, as it appears that AIG's headquarters at 70 Pine Street may soon be the site of condominiums (presumably, they will not be purchased with subprime mortages). According to reports, the space was sold for approximately $100 million to an overseas company that plans to transform it into a mixed-use development including both retail and residential spaces.

Details are still sketchy on the company's adjacent building at 72 Wall Street. In March, Service Employees Union local 32BJ was contemplating buying it for $33 and $49 million, but it is not clear if they ended up being the final purchasers.

AIG, which became infamous as the unofficial poster child of the financial meltdown, drew fire for its expensive retreats, outsized retention payments, and generous bonuses, all of which continued after the company received an $85 billion bailout. Eventually, the bailout expanded to $182 billion.

Currently, AIG is selling off assets in an attempt to pay down its loans. In this context, its extensive office space in lower Manhattan is a case of too much space, at too high a price. Needless to say, many former homeowners can empathize...

Tags: 70 Pine Street, aig, inthenews