Blackstone Sells Three Bryant Park for $2.2B

Ivanhoé Cambridge, the real estate arm of Canadian pension fund Caisse de Depot et Placement du Quebec, and its partner, Callahan Capital Properties, announced this week that it had purchased Three Bryant Park at 1095 Avenue of the Americas in New York City for $2.2 billion. The Blackstone Group sold the asset for the second highest price ever paid for a single U.S. office building, just behind the June 2008 sale of the GM Building at 767 Fifth Ave. in New York City for $2.8 billion, according to a CoStar report. The U.S. office portfolio Ivanhoé Cambridge is building with Callahan now totals almost 5 million square feet in New York City and more than 10 million square feet nationally, Callahan chief executive officer Tim Callahan said.

"The opportunity to acquire a truly iconic property like Three Bryant Park is extremely rare," said Arthur Lloyd, Executive Vice President, Global Investments Ivanhoé Cambridge in a press release. "As we redeploy capital that has been rotated out of non-core assets globally, Three Bryant Park represents a cornerstone of our expanding U.S. office platform. The property is 97% leased for the long term to a roster of high-credit quality tenants. It fits perfectly into our investment strategy of building a diversified portfolio of top-quality office properties in gateway U.S. office markets."

"When we considered the quality and unique characteristics of this property, along with the continued enhancements in the immediate area around Three Bryant Park, it was clear this is a compelling long-term investment opportunity," added Tim Callahan, Chief Executive Officer of Callahan Capital Properties. "We continue to be very pleased with the progress we have made in expanding our U.S. office platform with Ivanhoé Cambridge, which now totals almost 5 million square feet in New York City and over 10 million square feet nationally."

Three Bryant Park is located at 1095 Avenue of the Americas in midtown Manhattan between 41st and 42nd Street. The 41 story 1.2 million-square-foot office building, completed in 1972, occupies a 1.4-acre site and has direct access to New York City's major transit hubs. The property was 97% leased at the time of sale with major tenants including MetLife, Verizon and Dechert LLP.

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