HKMA Buys Stake in NYC Skyscraper for $1.2B

Real Summit Investment, an investment fund of the Hong Kong Monetary Authority's Exchange Fund (HKMA), has purchased a 49% stake in 1095 Sixth Avenue from Ivanhoe Cambridge and Callahan Capital Partners for $1.15 billion. Ivanhoe Cambridge, the real estate investment arm of Quebec's public pension plan, and Chicago-based fund manager Callahan, originally acquired the tower — also known as the Salesforce Tower New York and 3 Bryant Park — for $2.2 billion from Blackstone Group in January 2015, according to a report from The Real Deal. The new transaction values the office tower at $2.35 billion. Eastdil Secured brokered the transaction; terms of the deal were not disclosed.

HKMA — whose mission is to control the exchange rate of the Hong Kong Dollar — apparently made the move to control the exchange rate of the Hong Kong Dollar whose value is linked to the US Dollar by government policy. "To diversify risks, we decided to allocate, in a prudent and incremental manner, a small portion of the Exchange Fund to alternative asset class comprising global private equity and overseas real estate," the HKMA's deputy chief executive Eddie Yue said in a December speech.

The 1.2 million-square-foot office tower at 1095 Sixth Avenue between 41st and 42nd streets was 97% leased at the time of sale. "The opportunity to acquire a truly iconic property like Three Bryant Park is extremely rare," said Ivanhoe Cambridge's executive vice president Arthur Lloyd. He added that acquiring the office tower "represents a cornerstone of our expanding U.S. office platform."

For more news and information visit Blumberg Partners.

Ivanhoé/Callahan Buy Out Beacon at 1211 Avenue of the Americas

Ivanhoé Cambridge and its partner, Callahan Capital Properties, announced this week that it has acquired the 49% interest in 1211 Avenue of the Americas in Midtown New York City that it didn't already own from Beacon Capital Partners in a deal that valued the property at roughly $1.8 billion. Ivanhoé Cambridge and Callahan Capital Properties originally acquired a 51% stake in the office tower in October 2013 for $580 million. The deal was brokered by Eastdil Secured; terms were not disclosed.

"We are very pleased with the completion of our phased investment strategy for 1211 Avenue of the America," said Arthur Lloyd, Executive Vice President at Ivanhoé Cambridge. "This is a truly iconic property with exceptional locational and physical characteristics that offer tremendous value enhancement opportunities."

"1211 Avenue of the Americas is a significant asset in our 5.6-million-square-foot New York office portfolio and exemplifies our long-term approach towards owning quality assets in Midtown Manhattan," added Tim Callahan, Chief Executive Officer of Callahan Capital Properties. "With unparalleled transportation options and the largest concentration of retail, dining and cultural amenities Manhattan has to offer, Midtown continues to be among the most dynamic markets in which to live, work and play."

Built in 1973 and also known as the News Corp. Building, 1211 Avenue of the Americas is a 44-story, two-million-square-foot office tower that prominently stands among a row of skyscrapers known as "Corporate Row." The 45 story, Class A trophy building is centrally located on Avenue of the Americas between 47th and 48th streets, with direct access to the Rockefeller Center Concourse amenities and subway. The building is certified LEED® Silver and is also winner of the renowned BOMA 2008/2009 Operating Office Building of the Year Award and the BOMA 2010 Middle Atlantic regional Building of the Year Award. The property was 92% leased at the time of sale, with major tenants including Fox News, News Corp, Wells Fargo Advisors, and the headquarters of Dow Jones.

For more news and information visit Blumberg Partners.

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.

For more news and information visit Blumberg Capital Partners.