NEW YORK CITY — A subsidiary of the Hines U.S. Core Office Fund LP has closed on the previously announced sale of 499 Park Avenue and 425 Lexington Avenue in New York City for more than $1 billion combined. The sales generated a sizeable return on investment for Hines and its investors, according to Sherri Schugart, senior managing director, president and CEO of Hines’ Core Fund.
The fund sold 499 Park Avenue, a 28-story, 300,000-square-foot boutique office building located at 59th Street and Park Avenue, to an institutional fund managed by American Realty Advisors. The property, designed by I.M. Pei & Partners, was completed in 1980.
The fund sold 425 Lexington Avenue, a 31-story, 750,000-square-foot office building, to institutional investors advised by J.P. Morgan Asset Management. The property has been fully occupied since it’s opening in 1987. The original anchor tenants, Simpson Thacher & Bartlett LLP and CIBC, are still occupants of 425 Lexington. Murphy/Jahn designed the property.
Eastdil Secured LLC and CBRE jointly represented the fund in both transactions.
“We are pleased to expand our relationship with American Realty Advisors, and to continue our long-standing global relationship with J.P. Morgan,” says Tommy Craig, senior managing director of Hines’ New York office. “We will continue to build on our high level of activity in New York with further investment and development opportunities.”
Hines is a privately owned international real estate firm based in Houston. Hines has offices in 113 cities in 18 countries and controlled assets valued at approximately $24.3 billion.
— John Nelson