The deal--HRO's first for the fund--essentially shifts current co-owner Lehman Brothers' stake to the Germans and ups the new investor's ownership percentage to what one insider termed a "significant percentage." The other co-owner of the asset, Argent Ventures LLC, will continue to hold a piece of the pie and continue to lease and manage the nearly stabilized property. The deal is expected to close in the next 30 to 60 days.

Manhattan Mall has undergone a long and massive redevelopment program--to the tune of $500 million--since the days it was launched as a nine-story mall. Today, the asset boasts roughly 455,000 sf of high-tech office space fully leased on a long-term basis to Bank of America and Foote, Cone & Belding, and a 333,117-sf deal with Childrenswear Center.

In addition the retail segment of the property has been scaled back to four stories. The property currently has 250,000 sf of unused development rights. Only 45,000 sf of retail remains unleased.

In January, GlobeSt.com reported that HRO was returning to US acquisition activity and that a large portion of its focus would be scouting opportunities for HausInvest throughout North America. At the time, HRO partner Larry Wyman reported that he hoped to have as much as $1 billion invested for the fund by year's end.