[IMGCAP(2)]An industry source tells GlobeSt.com that CB Richard Ellis Inc.'s William Shanahan and Darcy Stacom negotiated the deal on behalf of Macklowe Properties, but CBRE had no comment and did provide confirmation by deadline. The industry source also notes that the same two also repped Macklowe in the recent sale of 540 Madison Ave. and Two Grand Central Tower here for approximately $705 million, as GlobeSt.com reported Wednesday.
[IMGCAP(3)]The purchase of the 23-story building, spanning from 55th to 56th streets between Avenue of the Americas and Seventh Avenue, is part of a $3.95-billion agreement the firm made to acquire that 591-000-rentable-sf building as well as two-million-sf GM Building, located between 58th and 59th streets at Fifth Avenue and Central Park South, the 591,000-sf office building at 125 W. 55th St., and the 664,000-sf Two Grand Central Tower at 44th Street between Lexington and Third avenues. That portfolio purchase price includes $1.47 billion in cash, $10 million in stock and the assumption of about $2.5 billion in debt.
[IMGCAP(4)]Mortimer Zuckerman, chairman of the board and director of the Boston-based REIT, said at a Real Estate Board of New York presentation in June that the firm is committed to its largest transaction to date amid this economic uncertainty. He said the GM building purchase reflected a long-term commitment, long-term confidence in the value of the properties and an underlying confidence in the New York City economy.
The acquisition was completed through a joint venture among Boston Properties, US Real Estate Opportunities I LP, which is a partnership managed by Goldman Sachs, and Meraas Capital LLC, a Dubai-based private equity firm. According to a Boston Properties press release, it has a 60% interest in the venture and will provide customary property management and leasing services for the venture. Boston Properties expects to account for its investment in the joint venture under the equity method of accounting rather than on a consolidated basis.
Current office tenants at the property, according to MrOfficeSpace.com, include Katz Communications, Air France, and Macquarie Holdings Inc. Retail tenants include Au Bon Pain, Heather Floral Co., Milos, and Starbucks. Boston Properties did not return GlobeSt.com queries by deadline.
According to the company's second quarter 2008 results, funds from operations for the quarter ended June 30, 2008 were $145 million, or $1.21 per share basic and $1.19 per share diluted. This compares to FFO for the quarter ended June 30, 2007 of $142.9 million, or $1.20 per share basic and $1.18 per share diluted. As of June 30, 2008, the company's portfolio consisted of 142 properties comprising approximately 46.8 million sf, including 14 properties under construction totaling 4.4 million sf and one hotel. The overall percentage of leased space for the 127 properties in service as of June 30, 2008 was 94.9%.
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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.
