AEW Capital buys stake in Brookfield’s 1 NY Plaza for $223M

Deal values 50-story FiDi office tower at $1.4B

TRD New York /
Dec.December 29, 2016 01:00 PM

From left: Ric Clark, Darcy Stacom, Jeffrey Furber and One New York Plaza

AEW Capital Management acquired a minority stake in Brookfield Property Partners’ One New York Plaza for $223.2 million, sources familiar with the transaction told The Real Deal. The deal for the roughly 15 percent stake values the tower at north of $1.4 billion.

The Boston-based investment manager made the purchase through its core fund AEW Core Property Trust, which is a compilation of pension funds, sources said. The deal closed Dec. 21 for roughly $550 per square foot, they added.

In May, Brookfield sold a 49 percent piece of the tower to Chinese sovereign fund China Investment Corporation for $683.5 million.

Brookfield, which now holds a roughly 35 percent interest in the tower, will continue to handle management and leasing. The Toronto-based office landlord refinanced the property, also known as 1 Water Street, with a $750 million loan from Wells Fargo in March.

Built in the late 1960s, the tower is home to tenants such as law firm Fried Frank and Morgan Stanley. Asking rents are in the $50s per square foot.

CBRE’s Darcy Stacom and William Shanahan, who brokered the deal, declined to comment, as did Brookfield. A representative for AEW could not be reached.

AEW, an active real estate buyer nationally, has largely focused on multifamily deals in New York, including the $170 million purchase of a 375-unit, Gotham Organization-developed Midtown rental complex now known as the Helux.

This year, the firm has sold a nine-building Los Angeles multifamily portfolio for $430.5 million and a Seattle office tower called West 8th for $370 million.

Brookfield is looking to sell a 49 percent stake in its Brookfield Place complex, a full or partial stake in 245 Park Avenue, and is considering putting the nearly 4,000-unit Putnam multifamily portfolio on the market.

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