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HausInvest Takes Lehman out of Manhattan Mall with $400M Recap

NEW YORK CITY--In HRO's first US deal for its German client, HausInvest takes a majority stake in the recently refurbished Manhattan Mall, partnering up with current co-owner Argent Ventures.

By John Salustri | Updated on March 26, 2004

NEW YORK CITY-An ownership shift is taking place at Manhattan Mall, the one-million-sf retail/office asset in Midtown. The shift comes as a result of a $400-million recapitalization secured by HRO for German client HausInvest Global. Douglas Harmon of Eastdil Realty represented the seller and orchestrated the accepted preemptive bid by HausInvest Global.

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.

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