JV Buys 417 5th Ave. for $127M

NEW YORK CITY-A Fifth Avenue office building marks the first acquisition by a newly formed joint venture between Olympus Real Estate Partners and Murray Hill Properties. A source close to the deal tells GlobeSt.com the price tag in the neighborhood of $127M.

Olympus, with offices here and in Dallas, and locally based Murray Hill are the new owners of 417 Fifth Ave., an 11-story class B office property located between 37th and 38th streets in Midtown’s Grand Central District. Darcy Stacom represented seller EBS Fifth Property Associates LLC, a partnership of Blackacre Capital Group and Emmes & Co. The deal, which closed on Thursday, was one of Stacom’s last acts on behalf of Cushman & Wakefield before leaving the firm to join rival CB Richard Ellis. It is Olympus’ first New York City acquisition.

“This property is unique in that it offers good current yield as well as near-term upside through several substantially under-market leases, which will expire over the next several years of our contemplated hold period,” Clark Hanrattie, a partner in Olympus Real Estate’s New York office tells GlobeSt.com. Hanrattie says Olympus’ “typical four-to-six-year investment in assets” is “consistent with how we underwrote this” transaction.