Shorenstein Closes On Two Office Buys

[IMGCAP(1)]NEW YORK CITY-San Francisco-based Shorenstein Properties LLC has completed the purchase of a controlling interest in the entity that owns the 610,000-sf Park Avenue Tower at 56 E. 55th St. and the 562,567-sf 850 Third Ave. in New York City. Although terms of the transaction were not disclosed, GlobeSt.com previously reported that the purchase was just shy of $1 billion . At the time, an unidentified source told GlobeSt.com that Shorenstein paid $930 million for a 93.5% interest in the partnership that controls both buildings.

[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.