Investcorp acquires prestigious New York building in Midtown Manhattan

Published January 13th, 2008 - 07:51 GMT

Investcorp, the alternative asset manager, today announced the completion of the $1.4 billion acquisition of the 280 Park Avenue building, located in Midtown Manhattan in New York City. This building is considered an iconic real estate feature of New York, and is home to many well known famous financial and investment institutions. Investcorp’s acquisition was made in partnership with Broadway Partners, an established real estate investment and management firm that is headquartered in New York and with whom Investcorp has successfully co-invested in previous investments. The property was acquired from Istithmar, the Dubai-based investment holding company.

 

280 Park Avenue comprises approximately 1.2 million sq. ft. of rentable office space in the heart of Manhattan. Due to its excellent central location and building quality, it is considered one of the prime office addresses in New York. It consists of one 31-story office tower fronting Park Avenue and one 43-storey office tower with a connecting 14-storey mid-rise office building. It has 29 passenger elevators and four freight elevators.

 

The building is currently 97.8% leased to 37 tenants representing a variety of industries, with a concentration in the finance and investment sectors. Tenants include Deutsche Bank, the National Footbal League (NFL), Credit Suisse First Boston, GE Capital, and Cohen & Steers. It is also Investcorp’s New York base: Investcorp operates its US real estate, private equity, hedge fund, and technology investment activities out of 51,000 square feet on five floors in the West tower, making Investcorp the 4th largest tenant in the building. It is strategically located close to New York City public transportation and commuter hubs with access to Connecticut, Westchester County, New Jersey and Long Island.

 

Investcorp's Managing Director Mazin Al Khatib commented on the deal saying: "This investment is in line with our strategy that makes us one of the largest investors in the US real estate market over the 25 year period. 280 Park Avenue is part of New York's heritage, and is an address sought after by top institutions wanting a presence in the heart of Manhattan. The building is well equipped and requires minimal maintenance over the next ten years.”

 

Al Khatib said that the real estate market in New York, and especially that for office space, was very active and had achieved attractive returns due to increasing demand coupled with scarce availability. He noted upcoming initiatives which will be undertaken to improve the operations at 280 Park Avenue aimed at increasing potential returns for clients. These included new rental policies, cementing relationships with tenants and controlling expenses.

 

© 2008 Al Bawaba (www.albawaba.com)


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