"We sold this more quickly than most of our assets," Matt Bronfman, managing director of Jamestown, explains. "We are generally hold an asset for seven to 12 years." He adds that the company sold more quickly in this case because "they approached us with a compelling number. We did have discussions with Apollo before we were approached wherein we discussed a sale. But we had not hired a broker or taken very serious steps." Jamestown's proceeds will be returned to its investors.

The purchaser is a newly formed affiliate of entities that recently announced an agreement to sell properties at Riverside South on Manhattan's West Side for $1.76 billion. Both buyer and seller agreed that the sale indicated the continuing strength of the commercial real estate market in Midtown. Other sales that have rivaled this one include Macklowe's purchase of the GM Building for $1.4 billion in 2003 and Tishman Speyer's acquisition of the MetLife Building at 200 Park Ave. for approximately $1.7 billion last spring.

"Hudson Waterfront Associates is expressing its confidence in the commercial real estate market in Manhattan with this purchase," says Barry Gross, who represents the firm. Bill Mack, Apollo's founder and senior partner, says that this sale is emblematic of the cyclical recovery of New York real estate. "Apollo's investment in 1290 dates back to 1993 and the bankruptcy of its former owner, Olympia and York. During that time, the market value of this single building has increased by close to $1 billion." And Jamestown paid $745.5 million when it acquired the property in 2002.