Investcorp Closes on $1.2B Park Ave. Buy

NEW YORK CITY-Investcorp’s US based real estate group and affiliates of locally based Broadway Partners, a national private real estate investment and management firm headquartered in New York City, closed on the purchase of 280 Park Ave. here from Istithmar. Although a source close to the deal tell GlobeSt.com that as of now, financial terms of the transaction are not being disclosed, GlobeSt.com previously reported that the contract was for about $1.2 billion . This transaction represents the fourth property acquired by Investcorp and Broadway Partners in their four-year history as joint venture partners.

The two tower class A office building, located in the heart of Midtown, consists of one 31-story building and one 43-story building, with a 14-story mid-rise connecting both towers. The building was built in 1961 and split into the east tower and west tower seven years later. The complex houses an impressive, diverse roster of tenants that include Deutsche Bank, Credit Suisse First Boston, the National Football League and Investcorp. Investcorp operates its US Real Estate, Private Equity, Hedge Fund, and Technology Investment activities in 51,000 sf on five floors at this location.

“This building, ideally located at the corner of 48th Street and Park Avenue in Midtown, offers tenants convenient access to restaurants, hotels, shopping, and public transportation, and is within a well-established corporate submarket where many of the world’s largest companies have chosen to locate their global headquarters or the base of their US operations,” notes Jonathan Dracos, co-head of Investcorp’s real estate group in a prepared statement. “Our investment in this top-tier property is a perfect example of how Investcorp works with ‘best in class’ operating and investment partners to acquire superior assets with an opportunity for value enhancement.” Dracos further explains that “with its fully integrated acquisition, asset management, leasing and property management platform, Broadway is well-equipped to provide the expertise and oversight necessary to maximize return on this important investment.”