Thursday, July 7, 2011

Pension Fund Sells Stake in Manhattan Tower for $341M

The California State Teachers' Retirement System (CALSTRS) recently sold its 65% stake in 120 Broadway to UBS Realty Investors for $341 million according to a Wall Street Journal report. The sale price marks a big profit for the pension fund as it originally acquired the asset for $240 million in 2004. The remaining 35% ownership of the property is held by developer Larry Silverstein. The building is currently 90% leased with major tenants including the New York State Attorney General and Bank of New York Mellon Corp.

The property, also known as the Equitable Building, is a 38-story skyscraper designed by Ernest R. Graham and finished construction in 1915; upon its completion, the building was the largest (in total floor area) in the world. After buying the building in 1980, Larry Silverstein had the building renovated and restored at a cost of $30 million, with renovations completed in 1990. As reported by the WSJ, the $155 billion California fund and Silverstein launched a partnership in 2006 to invest up to $2 billion in the tri-state area.

For more news and information visit Blumberg Capital Partners.

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