Tag Archives: completes

Update: China’s HNA Group Completes $2.2 Billion Purchase of 245 Park Ave.

China-based HNA Group and its concealed partners have actually closed on their $2.21 billion purchase of 245 Park Ave. in Manhattan from a joint endeavor of Brookfield Property Partners and the New York State’s Teachers Retirement System.

Coming soon will be the issuance of a $500 million CMBS deal backed by HNA’s purchase financing of the 1.6 million-square-foot home.

Ernst & & Young LLP has actually completed due diligence for J.P. Morgan Chase Commercial Home loan Securities Corp. in examining the accuracy of info backing securitization.

JPMorgan Chase Bank will be the lead lender on $1.6 billion in brand-new financing with involvement by Natixis Realty Capital, Barclays Bank, German American Capital Corp., Deutsche Bank, and Société Générale.

The CMBS funding belongs to a split loan structure consisting of 14 other fixed-rate, interest-only loans. The mortgage loan has three associated set rate mezzanine loans that will not be assets of the CMBS.

The deal with HNA values the property at about $1,380 per square foot. It is likewise a sign of foreign financiers’ continued desire to make huge bets on New York’s trophy home, according to Avison &&.

NYSTR’s obtained its 49% interest in the property in September 2003 for $438 million, giving the home an overall value then of about $849 million or about $530/square foot.

The sale is part of Brookfield Residential or commercial property Partners efforts to raise as much as $2 billion of net equity from possession sales in 2017 after raising $3 billion from sales in 2015, Brian Kingston, CEO of Brookfield Residential or commercial property Partners wrote in a shareholder letter last week.

“Our premier, well-leased properties in core markets continue to attract interest from worldwide investors seeking stable, bond-like yields,” Kingston said. “We will redeploy the capital raised from these sales to money the ongoing advancement of our 7 million-square-foot Manhattan West task in the Hudson Yards district on the west side, along with our other development jobs around the globe.”

The sale will create net profits to Brookfield of over $650 million.

“While a trophy possession in the much-sought-after Grand Central passage that commands some of the greatest leas in New york city, we felt the capital could be released elsewhere at higher returns,” Kingston said. “In addition, Brookfield’s earlier-generation personal realty funds have started harvesting capital through realizations of growing financial investments. During the quarter, these funds returned around $239 million of capital to BPY. As we have discussed in the past, our capital commitments to future opportunistic funds will be mostly funded through realizations from predecessor funds, which must continue to ramp up sequentially as the investment horizons within these funds draw near.”

Paramount Completes Buyout of Partner'' s Interest in 31 W. 52nd


(UPDATE|Oct. 2, 2015): Paramount Group, Inc. (NYSE: PGRE) has closed on its previously announced acquisition of the staying 35.8 % equity interest in 31 W. 52nd St. from its joint-venture partners Hines and Deutsche Possession & & Wealth Management for $230 million.

Following the all-cash sale, Paramount now totally owns the possession.

Both celebrations reportedly dealt with the direct sale in-house.

Kindly see CoStar COMPS # 3402822 for extra information on this transaction.

Original Story Continues Below

36 % Ownership Stake Expected to Trade for $230M

September 9, 2015

Paramount Group, Inc. has actually entered a definitive sales arrangement to obtain the remaining 35.8 % ownership interest at 31 W. 52nd St. in New york city City from its joint-venture partner.

Anticipated to be finished in the 4th quarter of 2015, based on customary closing conditions and final adjustments, the $230 million, all-cash deal would value the possession at roughly $1.06 billion including debt presumption.

Hines and Deutsche Asset & & Wealth Management offered the Midtown Manhattan workplace tower to Paramount Group in December 2007 for $595 million, according to CoStar data.See CoStar COMPS # 1476411.

The 30-story, 786,647-square-foot, 4-Star workplace tower was established by Hines with Kevin Roche John Dinkeloo and Associates, architect in 1985 on 1.1 acres in the Plaza District submarket, in between Fifth and Sixth Avenues. The building is currently 100 % rented to numerous tenants, and features views of Central Park, Rockefeller Center, and the Midtown skyline. It boasts a 120-space parking garage, a huge public plaza, and distance to five subway lines, luxury hotels, museums, and retail space.

“The acquisition of the remaining ownership interest in this distinct prize asset offers Paramount an outstanding opportunity to carry out on our embedded growth method,” said Albert Behler, chairman, president and CEO of Paramount. “We believe complete ownership of the home remains in the best long-lasting interests of our investors, as we continue to focus our efforts on driving NOI growth through strategic and creative leasing and other vital efforts.”

Paramount is a fully-integrated real estate financial investment trust that has, runs, manages, acquires and redevelops workplace buildings in select CBD submarkets of New york city City, Washington DC, and San Francisco.

Medical Health Care of NJ Completes 150,000-SF Long Term Lease in Suburban Philadelphia

Clinical Healthcare Associates of New Jersey PC, a subsidiary of Medical Practices of the University of Pennsylvania, has signed a long-term, full-building lease at 1865 Marlton Pike in Cherry Hill, NJ.

The two-story, 150,000-square-foot structure sits on 12 acres in the South Camden County submarket of Philadelphia, located on Route 70 E near I-295.

Off-price retail clothing chain Syms Corporation previously inhabited the building, utilizing it as retail and display room area up until the business stopped operations in 2012. The building has been uninhabited because that time.

Finmarc Management, Inc. obtained the asset in September 2013 for $4.75 million, significantly below replacement expense and moneyed in-part with proceeds from the earlier sale of its Shoppes of Burnt Mills in Silver Spring, MD, according to CoStar data.See CoStar COMPS # 2993498 and # 2798468.

“The Cherry Hill and South New Jersey/ Philadelphia marketplaces are exceptionally appealing to us, as we acknowledge the tremendous chances that exist, as supported by a healthy and growing financial environment,” discussed Neil S. Markus, principal of Finmarc Management. “It is among the crucial locations we have actually targeted to broaden our five million square foot profile outside of the higher Washington D.C. metropolitan area.”

Finmarc and the occupant strategy to invest more than $50 million in capital improvements to the building in the hopes of transforming it into a premier medical workplace center in South Jersey. Plans consist of the setup of a new roof, brand-new COOLING AND HEATING and electrical systems, full-building construct out, required site work, a brand-new structured garage and repaving of the existing parking lot, restorations to the building exterior, and the addition of brand-new windows along with upgrading all indoor and outside lighting.

Fred Berlinsky with Markeim Chalmers represented the property owner in lease settlements. Thomas Hummel and Dean Geis with NAI Geis Real estate Group, Inc. represented Clinical Health Care Associates.