The 1.68 million-sf building occupies the entire block from Park Avenue to Lexington Avenue between 53rd and 54th streets in Midtown Manhattan. The property serves as the corporate headquarters of Citigroup, which occupies approximately 40% of the space.
The tenant roster also includes Lehman Brothers, Bingham McCutchen, Arnold & Porter, Wilmer Cutler & Pickering, and JP Morgan Chase. The asset is fully leased with more than 75% of the space in committed for terms in excess of 10 years.
Boston Properties reportedly won a four-way bidding war that included Equity Office Properties, Brookfield Properties, and Vornado Realty.
Boston Properties currently owns five major office properties in Midtown Manhattan: Citigroup Center, 599 Lexington Avenue, 280 Park Avenue, 875 Third Avenue and Five Times Square. In addition, Boston Properties has Times Square Tower currently under construction in Times Square.
"The acquisition of 399 Park Avenue complements our core strategy of acquiring and building the finest properties in the markets in which we operate," says Mort Zuckerman, Chairman of Boston Properties. "It provides an extraordinary combination of return in relation to risk and an outstanding long-term real estate value. This building represents everything we seek in an acquisition. It should enhance our short term and long term profitability."
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