850 Third Ave./ Google maps
NEW YORK CITY—B&L Management Co. is considering purchasing HNA Group's interests in 850 Third Ave., as first reported by Bloomberg news. The news organization noted the transaction values the Midtown tower at $452 million and would cause HNA to lose money on the deal. Bloomberg stated no contract had yet been signed and no deposit was yet given, according to a source who remained unidentified because the deal had not yet been made public.
Real Capital Analytics lists the building ownership at 850 Third Ave. as a joint venture of HNA Group, MHP Real Estate Services and Atco Properties. HNA owns a 90% interest in the building. Its partners did not match the B&L offer, according to Bloomberg.
The Wall Street Journal had reported that the US government ordered HNA to sell its interest in the Midtown East building because it houses the New York City Police Department's 17th precinct, which is responsible for protecting Trump Tower. The building at 850 Third Ave. is situated between E. 51st and E. 52nd streets. Trump Tower, where President Donald Trump maintains a residence, is located at 725 Fifth Ave. between W. 56th and W. 57th streets.
Reuters reported that the Committee on Foreign Investment in the United States (CFIUS) several months ago ordered HNA to sell its stake in the property. CFIUS is a part of the US Department of the Treasury. It reviews transactions involving foreign investment in the United States to determine whether there are national security concerns.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
