Office space in the 100% leased site is advertised for $65 per sf. Tenants include Credit Suisse Asset Management, J. Walter Thompson and Revlon.
The acquisition represents a purchase price of approximately $379 per sf, which was called "an outstanding value in today's market" by Chuck Rosenzweig, managing director of RBS Greenwich Capital, which provided $328 million in fixed-rate financing for the acquisition. "Other Park Avenue properties have traded for upwards of $600 per sf in this calendar year," he added. Additional capital was provided by FMP, a Dutch real estate investment fund.
"237 Park Avenue is a core asset and part of our long term investment strategy," Max Capital CEO Adam C. Hochfelder says.
And Anthony Westreich, president of Max Capital, sees potential for expansion in the site, noting that, "One compelling aspect of this acquisition is the potential for Max to add new retail space to the property and, down the road, possibly add to the office square footage as well." The list of retail tenants includes Hallmark, Subway, Kelly Services, Washington Mutual, GNC and Café Metro.
Less than two weeks ago, Max Capital acquired 100% ownership of another Midtown property--the 1.7 million-sf, 16-story 450 West 33rd St. for $320 million, or $188 per sf.
Max Capital's office portfolio includes 7.5 million sf of office space n Manhattan valued in excess of $2.2 billion.
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