Asian Investors Spent Over $5.5B For These Seven Assets In 2016
Despite some volatility in the foreign investment market in 2016, Asian investors continued to pump billions into the U.S. economy in the form of office building acquisitions. Yardi Matrix sales data determined the highest value office transactions made by Asian investors in 2016, and the price tag for the top seven rings in at more than $5.5B.
1095 Avenue of the Americas in New York
In August, the investment arm of the Hong Kong Monetary Authority Exchange, called Real Summit Investments, paid $1.15B for a 49% stake in 1095 Avenue Of The Americas in New York. The 1.2M SF building is also known as 3 Bryant Park in Times Square. Sellers Ivanhoé Cambridge and Callahan Capital Partners bought the 42-story tower for $2.2B in 2015. Cushman & Wakefield leases the available office space.
One New York Plaza in New York
Along with 1221 Avenue of the Americas, China Investment Corp. paid $700M for a 49% stake in 1 New York Plaza in New York’s financial district, making the 2.6M SF asset worth slightly more than $1.4B. Brookfield Property Partners retained the majority stake in the 50-story office tower until it sold about 15% of its stake to AEW Capital Management in December for $223M.
7 West 34th St. in New York
One of the largest investment funds in South Korea, Korea Post, acquired a 47% stake in 7 West 34th St. in June. Korea Post bought part of the 12-story property fully occupied by Amazon from Vornado for $560M. In 2014, Amazon signed a 17-year lease for the entirety of the 470K SF building.
2970 Market St. in Philadelphia
Korea Investment Management Co. paid just over $350M to buy Brandywine’s interest in Cira Square in Philadelphia. Brandywine acquired the historic building in University City in 2007, renovated and rebranded the 863K SF asset, and sold it to harvest value to generate significant gains for shareholders, Brandywine president and CEO Gerard Sweeney said. The property is fully leased to the IRS.
1221 Avenue of the Americas in New York
In the final days of 2016, Canada Pension Plan Investment Board sold its 45% stake in 1221 Avenue of the Americas in New York to China Investment Corp. for just more than $1B. According to CoStar, CPPIB said it pocketed net proceeds of $950M before closing adjustments for the 2.6M SF building that is part of the Rockefeller Center complex expansion from the 1960s. Rockefeller Group and CPPIB acquired the 50-story tower in May 2010 for $576M. Rockefeller Group continues to manage the Midtown tower and owns the remaining 55%.
550 Madison Ave. in New York
In June, Olayan Group bought 550 Madison Ave. from Chetrit Group for $1.4B and received a $570M bridge loan from a U.S. subsidiary for ING Group. Olayan Group reportedly paid for the 37-story Sony Tower in cash, according to The Real Deal. Olayan plans to rebrand the value-add asset that is essentially vacant. This March, Bloomberg reported that the Olayan family might list their assets on the Saudi exchange.
1250 Broadway in New York
After Jamestown and Murray Hill Properties put 1250 Broadway on the market in April, Eyal Ofer’s Global Holdings entered into a contract to buy it for $565M. In November, Global Holdings received a $330M loan from HSBC Bank for the 721K SF, Class-A tower. At the time of the sale, the 39-story tower was 84% occupied.
CORRECTION, March 28 at 9am CT: A previous version of this story incorrectly stated that Clipper Equity is still a minority owner in 550 Madison Ave. The story has been updated.
