NEW YORK CITY-In two separate transactions totaling more than $1 billion, Hines US Core Office Fund has closed on the sales of 425 Lexington Ave. to J.P. Morgan Asset Management and 499 Park Ave. to American Realty Advisors. Hines did not disclose the exact sale price of each office tower; however, the 750,000-square-foot 425 Lexington has been rumored to have sold for $700 million, or about $933 per square foot.
“These trophy assets delivered exceptionally strong returns to our investors,” Sherri Schugart, senior managing director and president and CEO of Hines' Core Fund, says in a release. Hines acquired both buildings in 2003.
Law firm Simpson, Thatcher & Bartlett has been the anchor tenant at 425 Lexington since the property opened in 1987, and renewed its 595,000-square-foot tenancy this past April. The property's other major tenant, CIBC, occupies 115,000 square feet; Hines says the 31-story tower has been 100% occupied since it was new.
The tenant roster at 499 Park includes Bloomberg, Cantor Fitzgerald, M. Safra & Co. and Hines. Designed by I.M. Pei & Partners, the 28-story, 300,000-squyare-foot boutique office tower was completed in 1980.
Eastdil Secured and CBRE jointly represented the Core Fund on both deals. The pending sales were first announced this past May.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
