Munich Reinsurance America Agrees to Purchase 39-Story Madison Avenue Office Tower in Manhattan
NEW YORK CITY — Munich Reinsurance America Inc. has agreed to purchase 330 Madison Ave., a 39-story, 852,000-square-foot office tower in Manhattan.
The building was originally constructed in 1963 and was renovated in 2012 to include a new glass curtainwall façade, upgraded lobby and updated systems that achieved LEED Gold certification. The asset is located adjacent to Grand Central Station and near the New York Public Library and Bryant Park.
The sales price was not disclosed, although multiple news outlets reported the negotiations were in the range of $850 million to $900 million. At the time of the agreement, the building was 95 percent occupied by tenants including Guggenheim Partners, JLL and HSBC.
“We are glad to invest in the United States, given the U.S. share of [the buyer’s] insurance portfolio,” says Hans-Joachim Barkmann, managing director of MEAG, which advised the buyer in the transaction. “The overall American real estate market is also currently outperforming continental Europe, especially Midtown Manhattan, which is really unique in the world in terms of status and prospects.”
CBRE represented the seller, which was undisclosed, though several outlets report the seller was Abu Dhabi Investment Authority.
Based in Princeton, N.J., Munich Reinsurance America is the American branch of German company Munich Reinsurance Co. Reinsurance is the practice among insurance companies of insuring their own policies to reduce risk in the case of a large claim.
— Alex Tostado