Skyscrapers in Lower Manhattan, New York City.
NEW YORK CITY— Safehold Inc., a real estate investment trust specializing in ground leases, has acquired an existing ground lease at 425 Park Ave. for approximately $620 million.
The REIT entered into a joint venture agreement with a sovereign wealth fund in early September to execute the transaction. Safehold holds a 55% stake in the venture, acting as the primary manager in the agreement.
"2019 has been a breakthrough year for Safehold and the closing of the ground lease at 425 Park, the first new office building constructed on Park Avenue in over 50 years, represents another significant milestone for the company," said Jay Sugarman, chairman and CEO, in a prepared statement. "We look to finish the year strong and are excited to push forward with our plans for expansion in 2020."
The 42-story, 670,000-square-foot Class A trophy office building at 425 Park Ave. is currently under construction. The building takes the full block on Park Avenue between 55th and 56th Streets. Its 18,000 square feet of retail space is already leased to a restaurant that Restaurant Manager Daniel Humm of The NoMad will run.
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Mariah Brown
Mariah Brown is the New York Bureau Chief and Real Estate Reporter for GlobeSt.com, covering the New York Metro area, Northeast region and national real estate trends. She is responsible for producing multi-media content, including articles, podcasts and video. Before joining the GlobeSt team, she served as a New York Times fellow, reported for the Associated Press in New York and Philadelphia and several other New York City-based outlets.
