TIAA arm wants to sell 49% stake in 470 PAS

TH Real Estate is already in the market with 730 Third and 8 Spruce stakes

Jun.June 01, 2018 10:52 AM

Chris McGibbon and 470 Park Avenue South (Credit: TH Real Estate)

The real estate arm of TIAA is continuing its attempt at a New York property purge.

TH Real Estate is looking to sell a 49 percent stake in 470 Park Avenue South, which it owns with Norges Bank, sources told The Real Deal.

The investment manager hired Eastdil Secured to market the stake in the 17-story, 260,000-square-foot Midtown office property, sources said. Sources said TIAA has been interested in selling it for a couple of years, but just recently retained a brokerage. A deal would not affect Norges’ stake in the building.

Tenants include Priceline and musician-management agency Opus 3 Artists. Financial-research firm CreditSights recently signed a lease to relocate to 2 Park Avenue.

TIAA acquired the property, located between East 31st and 32nd streets, from SL Green Realty in 2007 for $157 million. Norges Bank, which controls Norway’s $1 trillion sovereign wealth fund, became a co-owner in 2013 when it partnered with TIAA on a $1.2 billion portfolio of East Coast real estate.

The company has two other Manhattan buildings on the market: the 49 percent stake in the Frank Gehry-designed rental tower 8 Spruce Street and the Midtown office property at 730 Third Avenue. It is also in contract to sell the leasehold on the Live Nation building at 430 West 15th Street to Invesco for about $150 million.

The price per square foot for office buildings in the area tend to range from $750 to just north of $1,000 per square foot, putting the potential value of the building somewhere between roughly $195 million and $260 million.

Two of the more recent office building sales along Park Avenue South clocked in above $1,000 a foot. In 2015, Columbia Property Trust bought 315 Park Avenue South for $353.9 million, or $1,070 a foot, and Aby Rosen’s RFR Realty bought 281 Park Avenue South for $50 million, or $1,111 a foot.

Related Articles

Brookfield Asset Management CEO Bruce Flatt

“We underwrite every investment like we’re going to hit a recession”: Brookfield CEO

Cadre founder Ryan Williams and Allen Smith

Cadre brings on former Four Seasons CEO as president

AKS Capital Partners Managing Partners Aaron Appel and Walker & Dunlop CEO Willy Walker

Walker & Dunlop acquires Aaron Appel’s AKS Capital Partners

From left: Publisher and founder Amir Korangy, Editor-in-chief Stuart Elliott and VP of Corporate Development Yoav Barilan

TRD’s founders share war stories from over the years

As the years go by_A look back at 17 years of real estate history

A look back at 17 years of real estate history

250th Issue

The Real Deal celebrates 250 issues

Neir’s Tavern (Credit: Google Maps)

City’s oldest bar, of “Goodfellas” fame, gets last-minute lifeline

Neir's Tavern (Credit: Google Maps)

Landlord to bar owner: You don’t have to go home but you can’t stay here