Norges, Beacon Buy Silverstein’s 1177 Avenue of the Americas for $571M

Silverstein Properties and the California State Teachers’ Retirement System (CalSTRS) are officially parting ways with their office building at 1177 Avenue of the Americas. 

A joint venture between Norges Bank Investment Management and Beacon Capital Partners just acquired the 47-story tower, which is valued at $571.1 million, according to a release and sources familiar with the deal. Norges acquired a 95 percent stake, paying $542.6 million, while Beacon Capital acquired a 5 percent stake and will now assume asset management duties at the property. 

The JV was formed specifically for the purpose of the acquisition, which was executed in all cash, sources said.

Eastdil Secured’s Gary Phillips, Will Silverman, Sarah Lagosh and Alana Bassen negotiated the sale.

Located between West 45th and West 46th streets, 1177 Avenue of the Americas spans 1 million square feet, sits close to Bryant Park and Rockefeller Center, and is home to top tenants such as HSF Kramer and Practising Law Institute, with recent significant lease signings including global insurance and investment firm Starr and insurance conglomerate H.W. Kaufman Group. 

Silverstein has owned the Midtown tower since December 2007 when the firm teamed with CalSTRS to purchase it from Paramount Group for more than $1 billion. The acquisition marked the third investment made by the Silverstein-CalSTRS partnership, also known as Metro Fund LLC, as well as the first 10-figure purchase in Manhattan since the unfolding of the subprime credit crisis that year. 

Sources familiar with the trade said 1177’s new owners plan to keep the building’s use as office. 

Cathy Cunningham can be reached at ccunningham@commercialobserver.com.