China’s largest publicly-traded developer is buying a majority stake in the 30-story Bush Tower office building overlooking Bryant Park for $125 million, according to Real Capital Analytics.
China Vanke is in contract to buy an undisclosed, controlling stake in the 220,000-square-foot office tower at 130 West 42nd Street from leaseholders Tribeca Associates and Meadow Partners, which paid $65 million to buy the ground lease in 2013.
Tribeca Associates will retain a stake in the lease and stay on as the operator, while Meadow Partners will exit its interest in the property, according to sources familiar with the transaction.
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Eastdil Secured’s Doug Harmon, Adam Spies and Kevin Donner represented Tribeca Associates and Meadow Partners on the deal.
When the partners bought control of the property in 2013 it was reportedly 80 percent leased with asking rents ranging from $50 to $60 per square foot. The building is now just about 41 percent leased with about 144,000 square feet available, according to CoStar.
The surrounding area has seen an influx of investment lately, including Canadian investor Ivanhoé Cambridge and Callahan Capital Properties’ $2.2 billion purchase of the 1.2 million-square-foot office tower at 1095 Sixth Avenue.
China Vanke got a toehold in New York City last year when Aby Rosen’s RFR Holding brought China’s largest publicly traded developer on as a partner for its 61-story condominium tower at 610 Lexington Avenue. China Vanke paid $45 million for its minority stake in that project, according to Real Capital data.
Yesterday, the company reported that its quarterly net profit fell 57.5 percent year-over-year to $105 million, due to decreased development activity in China.