(NEW YORK) — The New York office of Hines, the international real estate firm, announced today that a subsidiary of the Hines U.S. Core Office Fund LP (Core Fund) closed on the sale of 499 Park Avenue to an institutional fund managed by American Realty Advisors.
The Core Fund also closed on the sale of 425 Lexington Avenue to institutional investors advised by J.P. Morgan Asset Management. Exact sale prices of each building were not disclosed; however, the combined sale price totaled more than $1 billion, generating a sizeable return on investment for the Core Fund and its investors.
Eastdil Secured, L.L.C. and CBRE jointly represented the Core Fund in both transactions.
Tommy Craig, senior managing director of Hines’ New York Office, said, “We are pleased to expand our relationship with American Realty Advisors, and to continue our long-standing global relationship with J.P. Morgan. We will continue to build on our high level of activity in New York with further investment and development opportunities.”
Sherri Schugart, senior managing director and president and CEO of Hines’ Core Fund, said, “These trophy assets delivered exceptionally strong returns to our investors.”
499 Park, located at 59th Street and Park Avenue, is one of the city’s premier boutique office buildings. The 28-story, 300,000-square-foot tower was designed by I.M. Pei & Partners and completed in 1980.
425 Lexington is a 31-story, 750,000-square-foot office building designed by Murphy/Jahn. The property has enjoyed 100 percent occupancy since its development in 1987, and the original anchor tenants, Simpson Thacher & Bartlett LLP and CIBC, continue to occupy the building.
J.P. Morgan Asset Management – Global Real Assets has approximately $66.7 billion in assets under management and more than 400 professionals in the U.S., Europe and Asia, as of March 31, 2013. With a 40-plus-year history of successful investing, J.P. Morgan Asset Management – Global Real Assets’ broad capabilities provide many of the world’s most sophisticated investors with a global platform of real estate, infrastructure, maritime/transport and energy strategies driven by local investment talent with disciplined investment processes consistently implemented across asset types and regions.
American is an investment advisor, and a leading provider of real estate investment management services to institutional investors.
With over $5.3 billion in assets under management, American has provided real estate investment management services to institutional investors for over 25 years utilizing core and value-added commingled funds and separate accounts.
The firm’s portfolios include office, industrial, multi-family, retail and other properties nationwide, all of which are managed on behalf of American’s clients.
Information regarding American can be found at www.americanreal.com.
Hines is a privately owned real estate firm involved in real estate investment, development and property management worldwide. The firm’s historical and current portfolio of projects that are underway, completed, acquired and managed for third parties includes 1,273 properties representing more than 514 million square feet of office, residential, mixed-use, industrial, hotel, medical and sports facilities, as well as large, master-planned communities and land developments.
Currently, Hines manages 406 properties totaling 148.5 million square feet, which includes 78.3 million square feet for third parties.
With offices in 113 cities in 18 countries, and controlled assets valued at approximately $24.3 billion, Hines is one of the largest real estate organizations in the world. Hines is also a world leader in sustainable real estate strategies, with extensive experience in LEED®, ENERGY STAR®, BREEAM, Haute Qualité Environnementale and DGNB green building rating systems.
Visit www.hines.com for more information.
499 Park Avenue