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Shorenstein Enters NYC at 450 Lexington
By David Bodamer, Associate Editor - CPN Online
July 24, 2002 - The Shorenstein Company finally has a New York City property to call its own. The firm's purchase of 450 Lexington Ave., New York City, last week was remarkable in the fact that although the company has been managing and leasing office space in New York for more than a decade, it had yet to own an asset.
"We've looked for a long time to find the right building for us," said Gentry Hoit, head of Shorensetin's capital transactions group. "It's just taken us 10 years to get there."
The 911,000 square foot office building sits atop the Grand Central Post Office and was purchased from 450 Lexington Venture, L.P. The terms of the transaction were not disclosed. Shorenstein acquired the building through its sixth investment fund, SRI-6, which raised $609 million in equity last year. The fund is between 40 percent and 50 percent invested, Hoit said. Through the fund Shorenstein also invested in Two Liberty Place, a 1.2 million square foot building in downtown Philadelphia and owns 500 W. Monroe in Chicago.
As for the company's plan with the building, while it is 100 percent leased now, there is some "near-term" rollover in its leases, which should enable the company to increase its return, Hoit said. The top three floors of the building will come up for re-leasing within that time frame.
The United States Postal Service will continue to own the ground and the post office building beneath the 32-story office tower.
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