(NEW YORK) – The New York office of Hines, the international real estate firm, announced today that it has closed on the sale of 750 Seventh Avenue, a 34-story, 600,000-square-foot office tower located between 49th and 50th streets. The buyer is Fosterlane Management Corporation and the asset transacted for $485M, slightly above $800 psf.
CB Richard Ellis Group, Inc. represented the seller in the transaction.
750 Seventh Avenue was designed by the Pritzker Prize-winning architecture firm Kevin Roche John Dinkeloo Associates and was completed in 1989. One of a limited number of buildings constructed in the midtown core in the last 20 years, the property was acquired by Hines and an institutional equity partner in 2000 from Morgan Stanley, the building’s owner since 1994 and long-term major tenant, occupying more than half of the building.
Over the course of a decade of ownership, Hines kept the building fully occupied and extended all of the leases in the property on a long-term basis.
Hines and Morgan Stanley have carried out a large portfolio of significant work together in the New York area over the past 20 years.
In the 1980s and early 1990s, Hines and Fosterlane, the buyer of 750 Seventh, carried out the development and construction of a portfolio of projects which established Hines’ presence and reputation in the local marketplace including the development of 31 West 52nd Street, the Lipstick Building (53rd At Third), and 225 High Ridge Road in Stamford, CT. Fosterlane‘s re-entry into the New York marketplace is also expected to align long-term sponsorship with the continued high-quality occupancy of the building.
“We are happy to have selected Fosterlane as the new owner of 750 Seventh Avenue. Together we share a 30-year history of successful real estate investment and development.
Our success with this asset only further reinforces our confidence in New York City as the strongest real estate market in the U.S.,” said Hines Senior Vice President Tommy Craig.
Hines continues to also be active on other development projects in New York as well.
At 1045 Avenue of the Americas, Hines is working with Pacolet Milliken on a commercial building designed by Pei Cobb Freed, and at 53 West 53rd St.,
Hines is developing a Jean Nouvel-designed mixed-use tower adjacent to MoMA.
Hines has been active in the New York market since 1981, having developed in excess of 15 million square feet in the area. In addition, Hines is an active asset and property manager of both equity and third-party assets.
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 1,126 properties representing more than 459 million square feet of office, residential, mixed-use, industrial, hotel, medical and sports facilities, as well as large, master-planned communities and land developments. With offices in 106 cities in 17 countries, and controlled assets valued at approximately $23.7 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.