SJP, PGIM Partner to Acquire Office Building in Manhattan for $245M
NEW YORK CITY — SJP Properties and PGIM Real Estate, the real estate investment business of PGIM Inc., have acquired 470 Park Avenue South in Manhattan’s Midtown South neighborhood for $245 million. Norges Bank Real Estate Management and TH Real Estate sold the 301,178-square-foot office and retail building. New York City-based SJP Properties will lease and manage the property.
The partners plan to transform the property to accommodate the modern workforce with a boutique-style hotel lobby, outdoor garden, a game room, café, bar and enhanced rooftop terraces on the 14th and 18th floors, totaling 7,670 square feet. The new owners plan to gear the renovated workspace toward technology and creative sector tenants.
The building takes up a city block between 31st and 32nd streets. It was 82 percent leased at the time of the sale with tenants including Priceline.com and Dstillery Inc., a data science firm.
“In recent years, the Park Avenue South submarket has seen a large influx of tenants across a variety of industries — technology, healthcare, media, hospitality and more — making it a vibrant live/work/play destination,” says Alfonso Munk, Americas chief investment officer for PGIM Real Estate. “We are pleased to collaborate again with our long-term strategic partner, SJP, to unlock additional value at 470 Park on behalf of current and prospective tenants, while adding another well-located, Class A New York City property to our client’s portfolio.”
The 106-year-old 470 Park Avenue South was renovated in 2005. It is situated immediately across from 33 Street Station and less than a mile from Grand Central Station. The neighborhood offers a mix of loft properties, historic buildings, retailers, hotels and restaurants.
The buyers were represented internally by Todd Goldberg and Ian Christ of PGIM Real Estate, and Enrique Alonso and Zachary Freeman of SJP Properties.
PGIM Real Estate is part of PGIM Inc., the global investment management businesses of Prudential Financial Inc. (NYSE: PRU). Prudential’s stock price closed at $80.60 per share Wednesday, compared with $117.11 per share one year ago.
— Alex Tostado