FRANKFURT, Germany—NorthStar Realty Finance of New York has entered into an agreement to acquire Main Tower, a 56-story class A office building for about $606 million (€540M).
In a separate deal, Allianz Real Estate, the property investing unit of Europe's biggest insurer, bought an office building in Berlin that's rented to railway company Deutsche Bahn AG for $240 million (€210M).
At more than 656 feet tall, Main Tower is one of the tallest buildings in Germany. It is approximately 68,600 square meters, 98.5% occupied, and has a weighted average lease term of approximately eight years with two tenants rated "AAA" and "A" comprising over 70% of gross rents, according to release from NorthStar.
"We are extremely pleased with the addition of this iconic office tower to our fast growing pan-European portfolio,” NorthStar's chairman and CEO, David Hamamoto says in a release. “This transaction emphasizes NorthStar Asset Management Group's strong global business platform and ability to be nimble and dynamic, where speed of execution played a crucial role in the acquisition."
Hamamoto adds, "We believe this prominent office tower will be a great addition to NRE given its strong fundamentals, including being one of a very limited number of buildings in Frankfurt with greater than 40 floors, which demand premium rents in the market."
In the Berlin acquisition, Stettiner Carree, near the Nordbahnhof train station, was sold by private-equity firm Global Asset Capital, Allianz said in a statement released Tuesday. The building totals more than 662,000 square feet.
In reporting the deal on Tuesday, Bloomberg noted that insurers, pension funds and private-equity firms are buying Berlin offices to meet growing demand for space by tech and government-related employers.
“Berlin is a dynamic office market,” Annette Kroeger, CEO of Allianz Real Estate Germany said in the statement.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
