Search
 

Piecemeal

As evidenced by the recent GM building transaction, trophy properties in NYC are in demand right now, and we should see similar deals in the near future.

By Tony LoPinto | Updated on June 04, 2013
Piecemeal

It was announced on Sunday that well known Chinese and Brazilian families acquired a 40% interest in the prized NYC General Motors Building in a deal that establishes an implied value of the asset at $3.4 billion, a price which likely makes it the most valuable office building in the United States. The iconic building, which was completed in 1968, has had quite a run over the past 10 years. In 2003, the GM building set the North American real estate sales record for the price of an office building when it was sold to the Macklowe Organization for $1.4 billion, and then in 2008 it was traded by Macklowe who was caught in the fiscal crisis at the onset of the great recession, for a ticket price of an estimated $2.8 billion to a joint venture between Boston Properties, Goldman Sachs Real Estate Opportunities Fund and Meraas Capital (a Dubai based real estate private equity firm). Boston Properties will retain its 60% interest in the building after the sale. I review the facts associated with the history of the building trades because it highlights the extraordinary demand for interests in trophy New York Properties. I reckon that we’ll see more action over the next few months as investors with partial interests in prized NYC office buildings are willing to trade their interest for sky-high core asset values.

Tony LoPinto

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.