NEW YORK CITY-Hines executives are likely breathing a sigh of relief this Wednesday morning after announcing that 499 Park Ave. and 425 Lexington Ave. have been sold. The combined sale price will total more than $1 billion, according to the announcement.
A subsidiary of the Hines US Core Office Fund LP selected as the buyer of 499 Park Ave. an institutional fund managed by American Realty Advisors, while institutional investors advised by J.P. Morgan Asset Management purchased 425 Lex. Eastdil Secured and CBRE jointly represented the Core Fund on both transactions.
Says Tommy Craig, senior managing director of Hines' New York Office, in the announcement, “We are excited to expand our relationship with American Realty Advisors through the sale of 499 Park, and to continue our longstanding global relationship with J.P. Morgan Asset Management through the sale of 425 Lexington. The success of these transactions only reinforces Hines' commitment to continue to build on our high level of activity in New York City, particularly with further investment and development opportunities.”
Adds Sherri Schugart, senior managing director and President and CEO of Hines' Core Fund, in the release, “We are very pleased with the outcome of this competitive sales process. These trophy assets will deliver exceptionally strong returns to our investors.”
The buildings were first put on the block back in February. Darcy Stacom, vice chairman and head of the Investment Properties group for CBRE's New York office, says in the release, “499 Park is a one-of-a-kind asset, as is evidenced by the diversity and strength of bidders in this extremely active bidding process.”
Douglas Harmon, Eastdil senior managing director, adds in the release, 425 Lexington is the latest, trophy sale to demonstrate the immense investor depth and strength for well located, core, Manhattan office buildings.”
The 28-story, 300,000-square-foot 499 Park at the corner of 59th Street dates from 1980, and was designed by architect I.M. Pei. Among its tenancies is the corporate headquarters of Cantor Fitzgerald. Its floorplates run to about 11,000 square feet.
Built in 1987, the 31-story 425 Lexington is currently 100% occupied by law firm Simpson Thatcher & Bartlett LLC and CIBC. Floorplates there range from 18,000 to 36,000 square feet; the seventh, eighth and ninth floors of this 750,000-square-foot tower offer gardened terraces. It occupies an entire block between 43rd and 44th streets.
Simpson Thatcher renewed its lease last month, likely boosting the appeal of the asset, Craig says.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
