NEW YORK — General Growth Properties Inc. (NYSE: GGP), along with billionaire investor Jeff Sutton, Vladislav Doronin’s Capital Group and real estate developer Michael Shvo, has acquired The Crown Building, located at 730 Fifth Avenue in New York City, for $1.78 billion.
The Crown Building is a 26-story retail and office property located on the southwest corner of 57th Street and 5th Avenue in the Plaza District in midtown Manhattan. The acquisition was partially funded with $1.25 billion of secured debt.
GGP and Sutton will own, redevelop, lease and manage the retail portion of the property. The retail portion, which totals approximately 100,000 square feet, is currently occupied by tenants such as Bulgari, Piaget and Mikimoto.
Over the past 25 years, Sutton has amassed over 120 properties in prime locations throughout New York City. Sutton’s acquisitions include the purchase of 724 Fifth Avenue, 720 Fifth Avenue, 717 Fifth Avenue, 650 Fifth Avenue, 609 Fifth Avenue and 509 Fifth Avenue.
Capital Group and Shvo will redevelop, lease and manage the office tower from floors four through 26, comprising approximately 290,000 square feet. The office tower will be redeveloped into luxury residential condominiums.
According to media reports, the sales price of approximately $4,490 per share foot is a world record for an entire office building.
Chicago-based GGP is a S&P 500 company focused on owning, managing, leasing and redeveloping retail properties throughout the U.S. GGP’s stock price closed at $28.67 per share on Wednesday April 22, up from $22.90 one year ago.
— Haisten Willis