FROM ENTITY-LEVEL MERGERS AND PORTFOLIO TRADES TO JUMBO-
SIZED LEASES AND INVESTMENT SALES, HERE ARE SOME OF THE MOST
SIGNIFICANT TRANSACTIONS THAT CLOSED LAST YEAR, PRESENTED
GEOGRAPHICALLY FROM EAST TO WEST COAST
Merrimack Pharmaceuticals, InVivo Therapeutics and the
Massachusetts Institute of Technology.
An NGKF Capital Markets Boston team headed up by Robert
Griffin, Edward Maher and Matthew Pullen, in collaboration
with Newmark Grubb Knight Frank’s Mark Winters and David
Townsend, brokered the disposition on behalf of Divco West.
INVESTORS, TENANTS TAKE BIG BITES OUT OF BIG APPLE
Some of the biggest office investments of 2016 involved stakes in
Manhattan office properties. Last summer, SL Green Realty Corp.
sold a 40% interest in
11 Madison Ave. to PGIM Real Estate. The
transaction values the 2. 3 million-sf, class A Midtown South tower
at $2.6 billion—and, therefore, was the biggest office sale of the
year. PGIM has a one-year option to acquire an additional 9% stake
in the venture at the same gross property valuation. Darcy Stacom
and William Shanahan of CBRE advised SL Green, which realized
cash proceeds of approximately $480 million.
The deal took the throne from the prior top office sale of
2016—the July purchase of a 49% stake in 1095 Sixth Ave. for $2.35
billion. The buyer was Real Summit Investment, a real estate investment subsidiary of the Hong Kong Monetary Authority’s Exchange
Fund, while a JV of Ivanhoe Cambridge and Callahan Capital
Partners sold the stake in the 1.1-million-sf tower. Eastdil Secured
brokered the deal.
And in December, Eastdil brokered the third largest office sale
of last year. A partnership of Invesco Real Estate and China
Investment Corp. paid $2.3 billion for a 45% share of the 2.6-mil-
lion-sf McGraw Hill Building at 1221 Sixth Ave. from the CPP
Meanwhile, the highest per-sf price paid last year for an office
asset went to 693 Fifth Ave., which traded for $5,440 per foot. At
$525 million, the price was nearly four times the $140 million the
seller, Thor Equities, paid in 2010. French investment company
Fimalac, advised by Savitt Partners’ Bob Conover and Michael
Dubin, bought the 20-story property. Darcy Stacom and Marcella
Fasulo of CBRE represented and marketed the
building on behalf of Thor, while Shawn
Rosenthal and Jason Gaccione of CBRE’s debt &
structured finance group arranged financing for
the acquisition. Laura A. Koehler of the law firm
Cleary Gottlieb Steen & Hamilton LLP
represented Fimalac, while Morris Missry and Warren
Barrows from Wachtel Missry acted for Thor.
Simultaneous to the acquisition, the new ownership appointed Savitt Partners as the exclusive
leasing and management agency for the tower.
Thor was also behind the biggest multifamily
sale, based on per-unit price, of 2016. In a partnership with Imperial Cos., the firm paid $112
million for the remaining 70 rental units of the
163-unit Apthorp, located on Manhattan’s
Upper West Side. The new owners bought the
units—at nearly $1.6 million each—for condo conversion. Hall
Oster and Robert Knakal of Cushman & Wakefield represented
the seller, Ares Management, on the deal.
And on the retail side, a Soho retail condominium traded hands
for over $25,843 per square foot, the highest price paid per sf for a
US retail asset last year. Invesco Real Estate purchased a 4,500-sf spot
at 139 Spring St. for over $115.3 million from Spring & Wooster Co.
The seven-story pre-war boutique loft building houses Chanel as the
ground floor tenant. Ezra Saffati of Majestic Acquisitions represented both the buyer and seller in the transaction.
Finally, a Manhattan lease signed last year may have even broken
world records. Hedge fund Citadel signed on to occupy 200,000 sf
of 425 Park Ave., a 670,000-sf tower being developed by L&L
Holding Co. The $300 per sf price the tenant agreed to pay for the
penthouse level is reportedly the highest ever for office space in
the city, or likely elsewhere, even topping the prices paid by Silicon
Valley venture capitalists. L&L was repped in-house by David C.
Berkey, as well as a CBRE team of Mary Ann Tighe, Evan Haskell,
Sarah Pontius and Zak Snider. CBRE’s Andrew Sussman, John
Nugent and Chris Corrinet represented Citadel, which will move
into its new space once it’s completed in 2018. But those are far
from the only big transactions the Big Apple saw last year...
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