Rialto Building Sold for $57M

Africa Israel USA announced this week that it had closed on the sale of the Rialto Building in San Francisco, selling the property to a joint venture between Invesco Real Estate and Hines. The joint venture purchased the turn-of-the-century property for approximately $434 per square foot, or $57 million, according to a CoStar report. The sale was completed only six weeks after Africa Israel USA placed the property on the market. In total, 17 offers were submitted as part of the bidding process. Eastdil Secured represented the seller in the transaction.

"We were very pleased with the widespread interest in the building, which we feel is indicative of the Rialto's strengths, both architecturally and geographically," said Damien Stein, director of asset management at Africa Israel USA. "The demand for premier office space in the most sought-after area of San Francisco is clearly outpacing the ready supply."

"This sale proves that San Francisco is still unmatched as the nation's top-performing office market," added Tamir Kazaz, CEO of Africa Israel USA. Originally built in 1902 and designed by Meyer & O'Brien, the 135,485 square foot building at 116 New Mongtomery St. was 85% leased at the time of sale, with major tenants including Trulia, Walgreens and Chipotle.

For more news and information visit Blumberg Capital Partners.

Hilfiger Buys MetLife Clock Tower for $170M

Tommy Hilfiger has purchased 5 Madison Avenue, also known as the Clock Tower building, for $170 million with designs to turn the property into a hotel according to a New York Times article. The clothing designer purchased the property from Africa Israel USA (AFI), the American branch of Africa Israel Investments, an international holdings and investments group. Hilfiger sold his company last year for $4 billion has reportedly been shopping for a places to open his new hotel for some time.

"It's certainly a landmark in a neighborhood that's become more hotel-friendly in recent years," John Fox, a hotel industry specialist at PKF Consulting, said. "On the other hand, I'm not sure what a Hilfiger brand hotel is. I assume it's something with a preppy look to the design."

The famous 42-story Clock Tower building, once home to the Metropolitan Life Insurance Company is a preeminent icon of the Manhattan skyline. The 700-foot building was built in 1909 and remained the tallest building in the world until the Woolworth building beat it out in 1913. Overlooking Madison Square Park, AFI previously had plans to convert the tower into super high-end condominium apartments. AFI sold the property for $30 million less than the developer bought it for in 2007.

For more news and information visit Blumberg Capital Partners.