The Cheras’ Crown Acquisitions has acquired a 49.9 percent stake in a four-building Fifth Avenue portfolio that includes the Olympic Tower, the Wall Street Journal reported, although it could not confirm the terms of the deal. The transaction is expected to have valued the 51-story Olympic Tower, at 641 Fifth Avenue near 51st Street, a building at 10 East 52nd Street and two mansions north of the tower at $1 billion.
Crown purchased the stake from an affiliate of the Alexander S. Onassis Public Benefit Foundation. The foundation was created in his son’s honor by Aristotle Onassis, whose Victory Development first erected the tower in 1975. The Journal said the foundation unloaded the property because it believes the Crown can add to the value of the portfolio’s 105,000 square feet of Fifth Avenue retail space. The Cheras have successfully repositioned office space nearby at 666 Fifth Avenue and 530 Fifth Avenue.
The retail tenants in the portfolio include Armani Exchange, H. Stern, Versace and Cartier. But their leases expire in the next few years, and Crown will push to boost rents to $3,000 per foot from their current $1,000 per foot. [WSJ]