GM Building stake sells for $1.4B

Deal with Chinese, Brazilian investors makes property most valuable office building in U.S.

TRD New York /
Jun.June 03, 2013 10:00 AM

The families of Chinese real estate developer Zhang Xin and Brazilian banking magnate Moise Safra paid $1.4 billion for a 40 percent stake in the General Motors building, the Wall Street Journal reported. This values the building at 767 Fifth Avenue at roughly $3.4 billion, making it the country’s most valuable office property.

Relatives of Zhang – who is the founder and chief executive officer of Beijing megadeveloper Soho China – and the Safra family’s New York-based investment arm M. Safra & Co. bought the stake in the 50-story, 2 million-square-foot property through an entity called Sungate Trust, a source familiar with the matter told Bloomberg News.

The sellers were Goldman Sachs Group s U.S. Real Estate Opportunities Fund, which invests on behalf of the sovereign wealth funds of Kuwait and Qatar; and Dubai-based private equity firm Meraas Capital, the source told Bloomberg News. The sale closed May 31, the source added.

The building – which takes up a full block between Fifth and Madison Avenues and 58th and 59th Street — houses an Apple store at street level. The deal — which follows Crown Acquisitions and Highgate Holdings’ $1.3 billion purchase of 650 Madison Avenue from the Carlyle Group — comes at a time when investors looking for yield have been paying top dollar for high-end office properties, causing values to escalate faster than rents and occupancy.

CBRE Group’s Darcy Stacom and Bill Shanahan handled the transaction. Boston Properties retains a 60 percent stake in the building and isn’t looking to sell, according to the Journal. [WSJ and Bloomberg News] –   Hiten Samtani


Related Articles

arrow_forward_ios

Who needs New York? Garden State multifamily portfolio trades for $146M

How much for that CVS building? In Greenwich, the price is $30M

Vineyard Vines HQ sold in Stamford, Avon inks Rye deal & more Westchester and Fairfield real estate news

Mack-Cali sells Paramus office property, Murphy enacts land bank reforms & more North Jersey real estate news

New heights for Everest as insurer inks North Jersey’s largest lease deal of 2019

Multifamily properties trade in Bridgeport, Toll Brothers buys in White Plains and more Westchester & Fairfield real estate news

Have no fear? Debt brokers say Deutsche Bank quelled concerns about real estate lending

Somerville moves forward with 31-acre transit village, Woodcliff Lake office property sold for $36M & more North Jersey real estate news

arrow_forward_ios