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Brookfield Sells 49% Interest in 245 Park for $438M

NEW YORK CITY-Brookfield Properties has agreed to sell a 49% interest in 245 Park Ave. to the New York State Teachers' Retirement System for a whopping $438 million.

By Barbara Jarvie | Updated on September 06, 2003

NEW YORK CITY-In a move Brookfield Properties Corp.’ president calls strategic, the property owner, developer and manager is selling a 49% interest in 245 Park Ave. to New York State Teachers’ Retirement System. The total sale price of the transaction will be approximately $438 million, comprised of $195 million in cash and the assumption of $243 million of property-level debt. Brookfield was advised by ING Clarion based on a property valuation of $894 million. Adjacent to Grand Central, 245 Park, built in 1965, is a 45-floor office tower located on a full square Midtown block. The property was acquired by Brookfield in November of 1996 along with the Olympia + York US portfolio recapitalization/purchase.

“This sale of a half interest in 245 Park Ave. is a continuation of our strategy to create value for shareholders by proactively managing our assets to enhance value, and then establishing partnerships with high-quality institutional partners who can participate in the cash flow along with us,” notes Ric Clark, Brookfield’s president and CEO.

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