The Real Deal New York

Blackstone paying $750M to buy Park Avenue Tower — again

Asset management firm briefly owned building in 2007, then flipped it

July 02, 2014 08:30AM

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From left: Steve Schwarzman and Park Avenue Tower

From left: Stephen Schwarzman and Park Avenue Tower

Stephen Schwarzman’s Blackstone Group is buying the Park Avenue Tower.

Blackstone, which invests and manages alternative assets, is paying $750 million for the 35-story office building at 65 East 55th Street. Schwarzman already briefly owned the tower after he took over Equity Office Properties in 2007. He then flipped the property – as well as six other office buildings — and sold it to Harry Macklowe. Now, the San Francisco-based Shorenstein Co. is selling the building after assuming control in 2008 for $625 million.

Investment brokers Douglas Harmon, Adam Spies and Kevin Donner of Eastdil Secured were hired to sell the building last year. In April, a deal with Australian developer Grocon fell through.

Blackstone is expected to quickly close on the deal.

Meanwhile, two major tenants are getting ready to leave the building. Law firm Paul Hastings, the largest tenant in the tower with 253,000 square feet spread across 16 floors, is exiting in 2016 when its lease is up. Hedge fund manager Davidson Kempner, which rents 50,000 square feet, is leaving for 520 Madison Avenue.

Blackstone has also been one of the biggest investors in South Florida, buying six times more properties than the next most active investor in the area. [NYP, 1st] – Claire Moses

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