470 Park Ave. South
NEW YORK CITY—A joint venture of SJP Properties and PGIM Real Estate has purchased 470 Park Ave. South for $245 million from Norway's sovereign wealth fund, Norges Bank Real Estate Management and TH Real Estate. (TH Real Estate is an affiliate of Nuveen, the investment management arm of TIAA.) As the operating partner, SJP will manage and lease the Midtown South office and retail building.
Norges received $122 million for its 49.9% stake in the property, according to Real Capital Analytics. The industry database also recorded that the 292,061 square-foot, 17-floor structure was built in 1912.
The joint venture plans to reposition the building with a renovated lobby, outdoor garden, collaborative workspace, a game room, café and bar. The property has two roof terraces on the 14th and 18th floors for future activation and enhancements, and an opportunity for a private tenant entrance with dedicated signage.
In launching the leasing campaign, SJP is marketing a full floor of pre-built space to tenants in the technology and creative sectors with immediate and flexible space requirements. This space will have an open layout with a pantry as well as conference rooms and private break areas.
“The location of 470 Park Avenue South has become one of the most desirable neighborhoods in Manhattan for a diverse cross section of companies,” says Steve J. Pozycki, CEO of SJP Properties. “We saw this as an opportunity to acquire a well-situated, Class A asset with full avenue frontage alongside our long-time partner, PGIM Real Estate, and apply our asset management, leasing and construction expertise to capitalize on the neighborhood's strong fundamentals.”
Alfonso Munk, Americas chief investment officer for PGIM Real Estate, also notes a variety of industries including technology, healthcare, media and hospitality have been moving into the Park Ave. South submarket. He says with SJP, his company plans to “unlock additional value at 470 Park on behalf of current and prospective tenants, while adding another well-located, Class A New York City property to our clients' portfolio.”
The building occupies the full-block front along Park Ave. South between 31st and 32nd streets. It is currently 87% leased to tenants, such as Priceline.com and Distillery, Inc.
The transaction was led by PGIM Real Estate's Todd Goldberg, Ian Christ and SJP's Enrique Alonso and Zachary Freeman. Eastdil Secured served as the external broker.
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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.
