[IMGCAP(2)]Park Avenue Tower, one of the two Macklowe Properties assets, is located between Park and Madison avenues, is currently 97% leased. Major tenants in the 36-story building include the law firm of Paul Hastings; hedge fund managers Davidson Kempner Capital Management and King Street Capital Management; and private equity fund manager Oak Hill Capital Management. 850 Third Avenue, located between 51st and 52nd streets, is currently 92% leased. Major tenants in the 21-story building include cable and satellite entertainment operator, Discovery Communications; the law firm of Shearman & Sterling; and Citibank.
In a prepared statement, Douglas Shorenstein, chairman and CEO of Shorenstein Properties, says that he believes that "there are opportunities to enhance the value of these properties through active management, and that they compliment nicely our existing New York City portfolio." Shorenstein Properties made the purchase on behalf of its ninth investment fund, Shorenstein Realty Investors Nine LP, a more than $2.06 billion private commingled fund formed in the spring of 2007. Shorenstein sources were unavailable for further comment by deadline.
Shorenstein's New York City portfolio is comprised of more than 4.1 million sf of equity ownership interests in Park Avenue Tower, 850 Third Ave., 125 Park Ave., and the Starrett Lehigh Building and more than $500 million of subordinated debt interests in 660 Madison Ave., 650 Madison Ave., 1180 Avenue of the Americas, 450 Lexington Ave. and 14 Wall St.
As GlobeSt.com recently reported, Shorenstein Properties purchased a $250 million senior mezzanine loan backed by 450 Lexington Ave., a 910,000-sf office building located in the Grand Central submarket of Manhattan. The loan was purchased on behalf of Shorenstein Realty Investors Nine LP as well, the investment fund that Shorenstein made the Park Avenue Tower and 850 Third Ave. purchase with.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
