The Real Deal New York

Rudin sells 49% interest in One Battery Park Plaza to Allianz

Deal values the downtown property at $365M

June 16, 2016 02:30PM
By Ariel Stulberg

From left: Bill Rudin, One Battery Park Plaza and Allianz's Christoph Donner

From left: Bill Rudin, One Battery Park Plaza and Allianz’s Christoph Donner

Rudin Management sold a partnership stake in its 35-story Financial District office tower at One Battery Park Plaza to Allianz Real Estate of America.

The U.S. branch of Munich-based investment firm Allianz bought a 49 percent stake in the 870,000-square-foot tower located at 24 State Street, Rudin CEO Bill Rudin told The Real Deal.

Rudin’s firm, one of the city’s largest landlords, will continue to manage the property.

The deal valued the tower at $365 million, according to Real Estate Alert, which reported first on the deal.

“We always had a partner,” Rudin said, explaining the company’s rationale for the deal. “We always had it in our mind that we would sell that interest.”

His family’s firm developed the property in 1970 along with Rose Associates after both companies initially bid on the site. The Rose family decided to leave the partnership in 2012, selling its 49 percent stake to Rudin for a reported $80 million.

Rudin never officially put the stake on the market.

“We were in no rush,” he said. His company, he said, had long been in talks with Allianz over a partnership, and One Battery Park Plaza was a natural choice.

“It shows the strength and international attractiveness of Lower Manhattan,” Rudin said.

The building is fully occupied, according to Real Capital Analytics. Law firm Hughes Hubbard & Reed leases 10 floors there, 220,000 square feet total. Other major tenants include another law firm, Seward & Kissel, the business trade group Partnership for New York, Liberty Mutual Insurance Company and brokerage Meridian Capital Group.

Last year, Allianz paid $210 million to Lubert-Adler for a 95 percent stake in the ground lease at 114 Fifth Avenue in the Flatiron District.

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