NEW YORK CITY-Affiliates of Rockpoint Group and Fisher Brothers together have acquired an approximately 50% interest in 1345 Ave. of the Americas and 605 Third Ave. The seller was National Bulk Carriers, a real estate investment company, based here, that originally was owned by the late Daniel Ludwig.
Terms of the transaction were not disclosed, but industry sources report that the joint venture paid $1.4 billion, or approximately $728 per square foot, for the portion of 1345 6th Ave. that it bought in this latest deal; and $843 million, or approximately $884 per square foot, for 605 Third Ave. Representatives of Rockpoint and Fisher declined to comment.
The acquisition was completed on December 27, 2013. Combined, the buildings contain approximately three million square feet of space. The deal wasn't a tremendous surprise to the market, as Fisher Brothers affiliates already hold the remaining 50% stake in both buildings and Fisher Brothers continues to manage the properties, says Michael Cohen, president, tri-state, Colliers International.
“For Fisher to buy the Ludwig interests makes perfect sense because the company already has control of what happens in the building.”
The pricing, however, is a bit surprising, Cohen contends. “The price, on a per square foot basis, for the Third avenue building looks higher, but that's counter-intuitive because the Sixth avenue building would rent for more and be considered more valuable; it has views of Central Park in the tower.
“I can only guess that it's a function of long-term leases that are encumbering the building,” he suggests.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 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.
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.
