UPDATED, 5:34 p.m., Jan. 30: General Growth Properties is looking to expand the retail component at the Crown Building to 125,000 square feet. The real estate investment trust and partner Jeff Sutton paid a record-setting $1.75 billion for the property last month.
The investment in the trophy property on Fifth Avenue and 57th Street is part of the company’s strategy of purchasing more urban buildings, according to Bloomberg News, as rents and tenant demand rise in prominent shopping districts in U.S. cities. GGP and Jeff Sutton’s acquisition of the building for $1.75 billion in December set a world record for the price per square foot paid for an entire office building. Each partner owns a 50 percent stake.
Last year, GGP, headed by Sandeep Mathrani, bought a stake in three buildings in New York and one in Miami for $600 million. The REIT also owns a 50 percent stake in Manhattan’s 530 Fifth Avenue. It paid $150 million for its share in the building. [Bloomberg] — Claire Moses