NEW YORK CITY—Norges Bank Investment Management has entered into contract to acquire a 44% interest in an 11-building office portfolio in a partnership with Trinity Wall Street Episcopal Church. The sale is expected to close before year-end.
All located in the Hudson Square section of Midtown south, the properties are valued at $3.55 billion, with Norges' stake slated to be acquired for $1.56 billion. The assets will be unencumbered by debt at closing.
As previously reported when the deal first was agreed to in prinicipal, the properties are approximately 94% leased and total over 4.9 million square feet. They are located at 12-16 Vestry St., 200 Hudson St., 205 Hudson Street, 75 Varick St., 100 Ave. of the Americas, 155 Ave. of the Americas, 345 Hudson St., 350 Hudson St., 10 Hudson Square, 225 Varick St. and 435 Hudson St. The total portfolio comprises more than 30% of the Hudson Square commercial neighborhood, according to Norges.
The firm's Manhattan properties include stakes in Times Square Tower and 601 Lexington Ave. Earlier this month, according to PERE, the bank published a report saying it could triple its real estate allocation, from 5% of its portfolio up to 15%.
Trinity oversees about 5.6 million square feet of commercial space, in addition to four development sites, according to its 2014 financial report, PERE says.
The church is one of Manhattan's oldest landowners. A 1705 grant from Britain's Queen Anne gave the institution 215 acres, most of which were originally farmland. Today, the church's office properties house tenants such as MTV Networks, advertising firm Saatchi & Saatchi and CBS.
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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.
