PGIM Real Estate — an arm of Prudential Financial Inc. — has joined with SJP Properties to buy an office and retail building in Manhattan for $245 million.
The SJP-PGIM Real Estate joint venture purchased the building, 470 Park Ave. South, for $245 million from Norway’s sovereign wealth fund, Norges Bank Real Estate Management, and TH Real Estate.
TH Real Estate is an affiliate of Nuveen, the investment management arm of Teachers Insurance and Annuity Association (TIAA).
Norges received $122 million for its 49.9% stake in the property, according to Real Capital Analytics.
Real Capital Analysts reports that the 292,061-square-foot, 17-floor building was built in 1912.
The building occupies the full-block front along Park Ave. South between 31st and 32nd streets. It is currently 87% leased to tenants, such as Priceline.com and Distillery, Inc.
SJP, the operating partner in the SJP-PGIM Real Estate joint venture, will manage and lease 470 Park Ave. South.
The joint venture plans to reposition the building, by renovating the lobby and adding an outdoor garden, a collaborative workspace, a game room, a café and a bar.
Alfonso Munk, Americas chief investment officer for PGIM Real Estate, says that companies in a variety of industries have been moving into the Park Ave. South submarket. He says with SJP, his company plans 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 clients’ portfolio.”
The transaction was led by PGIM Real Estate’s Todd Goldberg, Ian Christ and SJP’s Enrique Alonso and Zachary Freeman. Eastdil Secured served as the external broker.
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