CalPERS Closes on $1.9B NYC Office Tower

California pension fund CalPERS has completed the acquisition of a 54-story Manhattan office building for $1.9 billion, according to documents filed with the New York City Department of Finance. The building at 787 Seventh Avenue was sold by AXA Financial, which originally acquired the building for $1.1 billion in June 2009. CalPERS acquired the office tower between West 51st and West 52nd Streets in part with a $780M first mortgage extended by Deutsche Bank, according to a Biznow article. Terms of the deal and representation were not disclosed; AXA originally announced it would put the property on the market in August 2015.

According to a Sacramento Bee article, the deal represents one of the priciest real estate investments CalPERS has ever made, and one of the largest deals in New York history. "The acquisition follows our real estate strategic plan to invest in core, income generating properties," said CalPERS spokesman Joe DeAnda in an email. The deal amounts to 7 percent of CalPERS' real estate portfolio, it reported. Major tenants of the building, currently known as the AXA Equitable Center, include Sidley Austin, UBS, BNP Paribas, and a Pret A Manger location that operates out of the ground floor.

For more news and information visit Blumberg Partners.

Government Funds Invest $380 Million in Milan Properties

Government investment funds in Abu Dhabi, Qatar, and Azerbaijan have invested a combined $380 million in three different properties in Milan, Italy. According to a Wall Street Journal report, The State Oil Fund of Azerbaijan (SOFAZ) jointly with the sovereign-wealth funds of Abu Dhabi and Qatar will use the funds to both buy and develop the properties in the fashion hub; individual transaction details were not disclosed by the funds. The properties include:

SOFAZ is buying the Palazzo Turati at Via Meravigli 7, an office property in Milan's historical Central Business District, for €97 million, marking the fund's first real-estate purchase in Italy;

Abu Dhabi Investment Authority agreed to buy a 1960s building in the Italian northern city, which Milan-based Corriere della Sera newspaper said will be demolished and replaced by a new tower;

and Qatar Investment Authority completed a deal to acquire the historical building that housed BNL's (a subsidiary of BNP Paribas) headquarters in Piazza San Fedele in Milan.

All three assets will be managed by Italian property company Coima SGR, according to a person familiar with the transactions. For more news and information visit Blumberg Partners.

Newport Tower Sold for Landmark $377.5M Pricetag

Brookfield Office Properties announced that it had successfully sold the Newport Tower office building in Jersey City, New Jersey for $377.5 million, making it the largest single office asset transaction in New Jersey history. Multi-Employer Property Trust (MEPT) bought the 36-story, 1.1-million-square-foot office building with advisement from Bentall Kennedy; CB Richard Ellis represented Brookfield in the transaction.

"This was the optimal time to monetize this mature asset, having achieved opportunistic returns for us and our fund partners," said Dennis Friedrich, president and global chief investment officer of Brookfield Office Properties. "During our six-year period of ownership and management, we were able to successfully lease-up, stabilize, and incorporate sustainable strategies in the building to significantly increase value."

Brookfield originally acquired the building as part of a $7.6 billion purchase of Trizec in 2006. The building was reportedly 89% leased at the time of sale with major tenants including BNP Paribas and AXA Equitable.

For more news and information visit Blumberg Capital Partners.