GM Building stake sells for $1.4B

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

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
WATCH: How climate change puts real estate at risk
WATCH: How climate change puts real estate at risk
WATCH: How climate change puts real estate at risk
Illustration of Amazon's Jeff Bezos (Photo illustration by Kevin Rebong for The Real Deal)
No room in the warehouse: Amazon fuels shortage
No room in the warehouse: Amazon fuels shortage
President Joe Biden (Getty)
Biden’s proposal to cut 1031 exchanges may be “tremendous blow” to real estate: experts
Biden’s proposal to cut 1031 exchanges may be “tremendous blow” to real estate: experts
The Plaza Hotel, St. Regis Hotel, and Waldorf Astoria (iStock)
Outlook for hotels improves — from awful to merely bad
Outlook for hotels improves — from awful to merely bad
CBRE’s Darcy Stacom and Bill Shanahan; Cushman & Wakefield’s Doug Harmon and Adam Spies
Titans of the towers: TRD’s annual ranking of NYC’s top investment sales firms
Titans of the towers: TRD’s annual ranking of NYC’s top investment sales firms
(Getty)
Manhattan retail market awaits recovery as vacancies rise in Q1
Manhattan retail market awaits recovery as vacancies rise in Q1
CBRE CEO Robert Sulentic and One World Trade Center (CBRE, iStock)
Port Authority taps CBRE to manage WTC
Port Authority taps CBRE to manage WTC
From left: JLL’s Tim Rivers, Levine Kellogg’s Jeffrey Schneider, Meland Budwick’s Mark Meland, Blanca Commercial Real Estate’s Tere Blanca, Savills’ Tom Capocefalo and Collier’s Jonathan Kingsley
The money’s moving to South Florida. Will the office leases follow?
The money’s moving to South Florida. Will the office leases follow?
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...