A group of institutional investors advised by JPMorgan Asset Management has closed on its purchase of 425 Lexington Avenue for more than $664 million, city records show.
The 31-story office tower was auctioned off by the international real estate investment firm Hines, which put the 27-story office building at 499 Park Avenue up for sale Read More
Dominated last year by smaller middle-market transactions, New York’s investment sales market has welcomed the return of large institutional transactions in 2013, while leasing activity in the first half of the year also experienced positive year-over-year growth.
With 10 transactions in excess of $400 million under contract through the second quarter, 2013 is set to be the single most active year for large deals since the Great Recession began in early 2008, according to midyear statistics from Cushman & Wakefield.
Hines has selected buyers for its properties at 499 Park Avenue and 425 Lexington Avenue. The properties, part of the Hines U.S. Core Office Fund, are set to be acquired by American Realty Advisors and institutional investors advised by J.P. Morgan Asset Management, respectively, for a combined total of over $1 billion.
“New York has demonstrated a capacity for large scale capital transactions,” Tommy Craig, senior managing director at Hines, told The Commercial Observer. “That has been validated [in these transactions.]”
Hines has been busy on the investment and development side over the past few months. After breaking ground at 7 Bryant Park in February, officials at the 56-year-old firm announced in March that they would put up for sale its properties at 499 Park Avenue and 425 Lexington, both part of the Hines Core Fund. Read More
In another whopping example of large real estate owners seeking to capitalize on current market conditions by unloading top-shelf inventory, Boston Properties has reportedly sold its 23-story office building at 125 West 55th Street for $470 million to J.P. Morgan Asset Management.
The deal follows a string of other Class A building sales this year — 550 Madison Avenue, 30 Rockefeller Plaza, 237 Park Avenue and 75 Rockefeller Plaza — which accounted for $3.8 billion of the city’s first quarter dollar volume and created a 46% year-over-year jump, according to data from Avison Young.
Law firm Simpson Thacher & Bartlett LLP has renewed its lease of 595,000 square feet at 425 Lexington Avenue despite the property being marketed for sale.
The firm’s new lease is a 15-year extension from 2018, expiring in 2033. Asking rents were not disclosed.
Alexander Chudnoff, a commercial leasing broker who takes pride in strengthening relationships with clients through “impeccable service,” was especially busy in the aftermath of Hurricane Sandy.
The Jones Lang LaSalle executive managing director was dividing his time last week between volunteer efforts in the Rockaways, where he provided hot pizza and coffee to storm victims, and getting on the phone to make sure his Downtown Manhattan clients could stay open. Though it was a difficult time, the activity of making connections was just what attracted Mr. Chudnoff to the business in the first place.
“I love to make calls. I love to canvass,” he said. “I like to develop the relationship.”
In some cases, the storm required short-term arrangements, such as lining up space with other clients or in Jones Lang’s own offices, he said. In others, clients were able to proceed with minimal disruption, as when Dentsu Holdings USA returned to work at 32 Avenue of the Americas when Rudin Management opened the building the Monday after the storm.
Investment firm First Spring Corporation has renewed its lease for its 26th floor office at 499 Park Avenue, The Commercial Observer has learned.
The firm will continue to rent 11,591 square feet in the 28-story building, located on 59th and Park.
French luxury home goods maker Daum Inc. and its sister dinnerware company Haviland will officially move out of its longtime Madison Avenue storefront to 4,500 square feet of office and retail space at 499 Park Avenue, where the business had been recently operating a temporary store for the holiday season.