 |
125 Park Ave. sold for $225M
By Barbara Nelson - Real Estate Weekly
August 4, 2004- Shorenstein Co. is picking up 125 Park Ave. for $225 million, to be included in its sixth investment fund.
The 25-story, 575,000-s/f office building that is nearly 100% leased at Grand Central, is being sold by Watch Holdings, a subsidiary of GE, which is also a tenant.
A source familiar with the deal told Real Estate Weekly Shorenstein does not have a reputation for paying a high price for buildings, but the ability to close the deal in just over a month was appealing. The deal is expected to close in early September, the source said.
Woody Heller of Studley, who represented the seller, Watch Holdings, said the building's location and big name tenants also helped to secure the deal.
"The building has one of the best locations in the country," said Heller. "It sits right on top of Grand Central Station."
Its tenants include magazine publishers Meredith and Reed Elsevier and Newmark & Co.
Heller also said with a roll of "high-credit tenants," and being nearly fully leased, future plans may be to make improvements to the building enabling Shorenstein to substantially raise rents in the 80-year-old building.
Shorenstein closed on its seventh investment fund in February, but has not started to add acquisitions to the fund as of yet.
Since 1992, Shorenstein has sponsored a series of closed-end real state investment funds. These funds have acquired and developed over 16 million square feet of Class A office properties throughout the United States. Recent properties acquired by Shorenstein in New York City in previous funds include 450 Lexington Avenue and 1440 Broadway.'
The company has also acquired buildings in Chicago, Washington D.C., Boston, Miami and San Francisco.
Shorenstein Co. is privately owned and headquartered in San Francisco and owns and operates a portfolio of Class A office buildings totaling more than 20 million s/f and valued in excess of $4.5 billion. The company is engaged in all aspects of office building investment, development, financing, leasing, construction, and management.
|
