NEW YORK – Prudential Real Estate Investors (PREI) and SJP Properties have sold a 45 percent interest in Eleven Times Square, a 1.1-million-square-foot office and retail tower in Midtown Manhattan. The sale to Norges Bank Investment Management was based on a gross value of $1.4 billion.
The partnership will continue to own and control the building, while operating partner SJP Properties will continue to manage, lease and operate the property. SJP’s headquarters are also located within tower.
“This transaction is reflective of Eleven Times Square’s position as a premier destination for leading global and local companies,” says Jeff Schotz, SJP’s executive vice president. “Given the success of our leasing program and robust demand for our remaining premium tower space, we believe that now is an appropriate time to recapitalize the building as we continue to look for opportunities to further expand our New York metropolitan area market presence.”
The tower was completed in 2010. It is situated at the intersection of Eighth Avenue and 42nd Street. The building is 90 percent leased to tenants like Microsoft Corp. and Proskauer law firm, along with a variety of other companies within the finance, technology, legal and media industries.
“The strength of the tenant roster and the state-of-the art features at Eleven Times Square, combined with its central location in the heart of New York City, allowed us to capitalize on the strong investor demand for core office properties in New York,” says Kevin R. Smith, a PREI senior managing director and head of the Americas business. “This transaction gives us the opportunity to retain control of this trophy asset with our long-term partner SJP, while also allowing PREI to redeploy capital into other core investments that provide steady returns for our investors.”
The minority sale was marketed by CBRE. PREI is the real estate investment and advisory business of Prudential Financial Inc. It has $58.2 billion of gross assets under management, as of Sept. 30. Prudential Financial is a financial services company with more than $1 trillion of assets under management, as of Dec. 31.
SJP Properties is a privately held real estate company specializing in the development, management and operation of Class A commercial and luxury residential developments in the New York Metropolitan region.