NEW YORK CITY — Norges Bank Investment Management, the world’s largest sovereign wealth fund, has agreed to acquire a 95 percent interest stake in Manhattan’s 1177 Avenue of the Americas for $542.6 million. The deal values the 1 million-square-foot office property at $571.1 million.
Boston-based Beacon Capital Partners will acquire a 5 percent interest in the building and will perform the asset management duties for the property on behalf of the new ownership.
Eastdil Secured served as exclusive advisor to the seller, a joint venture between California State Teachers’ Retirement System (CalSTRS) and New York City-based Silverstein Properties. The transaction is expected to close this quarter.
The sellers acquired the Sixth Avenue building at the end of 2007 for more than $1 billion. The 47-story property was completed in 1992. Notable tenants include law firm Kramer Levin, private equity firm Mill Point Capital, nonprofit Practising Law Institute and global insurance and investment organization Starr. The asset features a recently renovated lobby with 60-foot-high ceilings and a new outpost of Naya, a fast-casual Middle Eastern restaurant.
Norges Bank Investment Management is an investment fund created to manage revenue from Norway’s oil-and-gas resources. The fund invests in equities, fixed-income investments, real estate and renewable energy infrastructure, and maintains holdings in about 8,500 companies worldwide. The fund has a value of more than 19.8 trillion Norwegian kroner, or nearly $2 trillion USD.
— Kristin Harlow