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Brookfield shopping 49% stake in Brookfield Place: report

Interest could sell for $2.45 billion

Brookfield Place
Brookfield Place

Brookfield Property Partners is shopping a 49 percent stake in Brookfield Place that could value the office and retail complex at $5 billion.

The 8 million-square-foot property, formerly known as World Financial Center, is 93 percent occupied. Eastdil Secured, which recently lost its top brokers Doug Harmon and Adam Spies to rival Cushman & Wakefield, is marketing the property, Real Estate Alert reported.

The $5 billion valuation would be equivalent to about $625 per square foot. If the stake sells, it would likely become the second most expensive real estate sale in Downtown, behind the $3.2 billion World Trade Center in 2001.

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Brookfield, which spent $250 million renovating the complex, considered selling a stake in the tower back in 2014. The Toronto-based firm is currently shopping the 1.8-million-square-foot office tower 245 Park Avenue, which could fetch $2.1 billion.

Along with partner Urban American Management, Brookfield is also considering the sale of the 4,000-unit multifamily package known as the Putnam portfolio. Sources familiar with a recent appraisal said it could be worth about $1.5 billion.

At Brookfield Property Partners’ most recent earnings call, the firm’s CEO Bryan Kingston alluded to further asset sales and said “core real estate in the U.S. continues to be a pretty desirable place for a lot of these offshore sovereign wealth funds.”

Meanwhile, Brookfield is developing the $8.6-billion mixed-use development Manhattan West near Penn Station. Last year, it sold a 44 percent stake in the project to the Qatar Investment Authority.  [REAlert] — Konrad Putzier

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