Biggest Building Deal Since Google! Stake Sale at $2 B. Tower
Laura Kusisto April 18, 2011, 8:03 p.m.
In the most significant office building deal to close since Google last winter grabbed 111 Eighth for $1.9 billion, Albert Behler’s Paramount Group has bought up the remaining 49 percent stake at 1633 Broadway in a deal that valued the building at $2 billion. A joint venture of Merrill Lynch and Morgan Stanley sold their interest in the 2.4 million-square-foot, 48-story tower, multiple industry sources told The Observer, though the price Paramount paid for the stake could not be confirmed.
Designed by Emery Roth, 1633 Broadway, at the corner of Broadway and 50th Street, is one of the 10 largest and most spectacular office buildings in the city and home to marquee tenants such as Time Warner and Allianz Global Investors.
This is one of the largest office building deals since the investment sales market virtually stalled in 2008. In 2011, the only remotely comparable sale was at 11 Madison Avenue, where a stake traded for $469.44 million, according to Massey Knakal.
Paramount has done more than its part throughout the recession, buying a Deutsche Bank-owned 700,000-square-foot tower at 31 West 52nd Street for more than $500 million, and, in partnership with Sherwood Equities, a 320,000-square-foot Class B office building at 440 Ninth Avenue from SL Green for $160 million. But this purchase is sure to add an extra shine to the New York City-based company’s portfolio.
Eastdil Secured represented the seller in the transaction, but brokers could not be reached for comment.