In New York, apartment occupancy, which had dropped to as low as 70% during COVID, is now rapidly climbing back with record numbers of new leases being signed each week at higher and higher rents.
Condo sales, which had stalled during COVID, are now active, albeit at discounted pricing, except I'm proud to say that our 220 Central Park South where resales are at a premium.
At 220 Central Park South, where we are basically sold out, resale pricing is up, and that's an understatement.
A recent spectacular example, which is now public, is a two-floor 12,000 square foot resale that traded at a record-breaking $13,000 per square foot, think about that.
Here's an interesting fact, a Fortune 100 occupier household name who dropped out of the market during COVID has come back to market.
They were originally looking for 300,000 square feet to house 2,800 employees.
Post-COVID, after extensive study and space planning, they now need and are seeking 400,000 square feet, a 30% increase to house the same 2,800 employees.
In both instances, their projected in-office occupancy is the same 60%.
The fact that this occupier needs 30% more space post-COVID is contrary to all analyst expectations, but that is the fact.
At Farley, we have delivered to Facebook all of their 730,000 square feet.
The West Side of Seventh Avenue, along the three blocks stretching from 31st Street to 34th Street, is now a massive construction site, where we are transforming the 4.4 million square foot PENN one and PENN 2 into the nucleus of our cutting-edge connected campus.
The 34th Street PENN 1 lobby just opened, and our unrivaled three-level amenity offering will be completed at year-end.
Our full building PENN 2 transformation, including the bustle and reskinning, is 98% bought out on budget and off to a fair start.
Our 14,000 square foot sales center the Seventh Floor of PENN 1 is now open to rate reviews from brokers and occupiers.
We expect demolition and shutdown costs to be about $150 million, which you should look at as land cost.
Our book basis in this property today is $203 million.
While overall availability is 18%, assets newly built or repositioned since 2000 have a much lower direct vacancy rate of 11%.
Last quarter, 88% of new leasing activity in Midtown was a Class A product.
Residential neighborhoods are bustling, less so the commercial canyons where office utilization is now approximately 23%.
Last week, we announced that Wegmans, the premier grocer in the Northeast region, is opening its first store in Manhattan at our 770 Broadway replacing Kmart.
The fact that Wegmans is coming is creating excitement with it at last count, 43 print and broadcast press articles celebrating the announcement.
Wegmans expects that as much as 50% of its volume will be from in-home delivery -- appropriately from to home delivery.
We will be investing $13 million in TIs, leasing commissions and free rent in this long-term lease with a 65% GAAP mark-to-market increase over Kmart's rent.
This quarter, we announced that we exercised a ROFO to acquire our partner's 45% interest in One Park Avenue in a transaction that values the building at $870 million.
Based on the in-place floating rate loan, we project $18 million, $0.09 cents per share first-year accretion.
Last summer, we brought 555 California Street to market for sale and are unable to achieve fair value, we withdrew, understandable at the height of COVID with travel restrictions and so forth.
At that time, we said we will refinance and this past quarter, we did to the tune of $1.2 billion, netting us approximately $467 million at share.
So one might say the $460 million is free money.
For 2021, we guided cash NOI of $135 million.
For 2022, we guided cash NOI of $160 million, which we affirm.
For 2023, we announced new cash NOI guidance of not less than $175 million.
You should know that, as expected, Swatch exercised the termination option for a portion of their space at St. Regis, which is effective March 2023 with a $9 million termination fee.
Second-quarter comparable FFO as adjusted was $0.69 per share compared to $0.56 for last year's second quarter, an increase of $0.13.
$0.09 from tenant-related activities, including commencement of certain lease expansions and nonrecurrent or straight-line rent write-offs impacting the prior period, primarily JCPenney and New York & Company.
$0.02 from lower G&A resulting from our overhead reduction program and $0.02 from interest expense savings and the start of improvement in our variable businesses, primarily from BMS cleaning.
Companywide same-store cash NOI for the second quarter increased by 0.5% over the prior-year second quarter.
Our core New York office business was up 3.2%.
Blending in Chicago and San Francisco, our office business overall was up 2%.
Consistent with prior quarters, our core office business, representing over 85% of the company, continues to hold its own, protected by long-term leases with credit tenants.
Our retail same-store cash NOI was down 6%, primarily due to JCPenney's lease rejection in July 2020.
But excluding the impact of JCPenney's lease rejection, the same-store cash NOI for the remaining retail business was up 9.8%.
Our office occupancy ended the quarter at 91.1%, down 2 percentage points from the first quarter.
This was expected and driven by long expected move-out at 350 Park Avenue and 85 Tenth Avenue as well as 825 Seventh Avenue coming back into service.
Retail occupancy was up slightly to 77.3%.
And office tour activity has now exceeded pre-pandemic levels with more than 11 million square feet of active tenant requirements.
With more than 100,000 jobs now recovered, we're at 92% of the pre-pandemic peak.
During the second quarter, we signed 33 leases, totaling 322,000 square feet with two-thirds coming from new companies joining our high-quality portfolio across the city.
The average starting rent of these transactions was a strong $85 per square foot.
The leasing highlight for the quarter was 100,000 square feet at PENN 1, further validating the market's resounding reception to our redevelopment of this property.
The largest transaction was a new lease with Empire Healthchoice for 72,000 square feet.
Looking toward the second half of 2021, our leasing pipeline has grown significantly since last quarter with more than 1 million square feet of leases in active negotiation, including 180,000 square feet of new leasing at 85 Tenth Avenue, as well as an additional 1.6 million square feet in various stages of discussion.
This includes discussions with several large users newly interested in PENN 2 after seeing our vision at the Experience Center.
Our office expirations are very modest for the remainder of 2021 and 2022, with only 976,000 square feet expiring in total, representing 7% of the portfolio, and 150,000 of this square footage is in PENN 1 and PENN 2.
As we look toward our 2023 expirations of 1.9 million square feet, of which 350,000 is in PENN 1 and PENN 2, we are, of course, already in dialogue and trading paper with many of these companies and anticipate announcing important transactions by year-end.
While short-term renewal leasing dominated the market during 2020, activity has picked up with almost 1 million square feet of new leasing completed during the second quarter, though concessions are unusually high.
At theMART, we completed a 91,000 square foot long-term office renewal with 1871.
Chicago's premier technology incubator for entrepreneurs and have an additional 80,000 square feet of new deals in negotiation.
Attendance was 10% higher than the same show produced pre-pandemic 2019, and feedback from exhibitors and attendees was very positive.
In San Francisco at 555, we are finalizing a couple of small, strong leases in our fall other than the cube.
It bears repeating that in May, we upsized our 555 California Street loan from $533 million to $1.2 billion with no additional interest costs.
We also reentered the unsecured debt market for the two tranche $750 million green bond offering at a blended yield of 2.77%.
Finally, our current liquidity is a strong $4.492 billion, including $2.317 billion of cash and restricted cash and $2.175 billion undrawn under our $2.75 billion revolving credit facilities.

Summary:
Second-quarter comparable FFO as adjusted was $0.69 per share compared to $0.56 for last year's second quarter, an increase of $0.13.