CommonWealth Partners closes on $1B Hudson Commons buy

Deal marks city's largest investment sale since 2019

New York /
Dec.December 17, 2021 04:51 PM

CommonWealth Partners CEO Brett Munger & 441 Ninth Avenue in Manhattan (Hudson Commons, CommonWealth Partners, Illustration by Kevin Cifuentes for The Real Deal)

The Hudson Commons office building is the site of the biggest investment sale in New York City in two and a half years.

Los Angeles-based CommonWealth Partners closed on 441 Ninth Avenue on Friday for just over $1 billion, the Commercial Observer reported. The Real Deal reported last month that the adviser to the California Public Employees’ Retirement System fund was in contract to buy the office and retail building for 10 figures.

According to data and records reported by the Observer, the $1.033 billion deal is the largest investment sale in the city since June 2019, when 30 Hudson Yards was sold to a Related Companies affiliate for $2.2 billion.

Cove Property Group and Baupost Group sold the 700,000-square-foot building. The developers bought the property in 2016 for $330 million and proceeded to redevelop the former warehouse that had been converted into offices for EmblemHealth and added 17 floors before leasing to tenants like Peloton and Lyft.

The building is 75 percent leased, according to the Observer. The deal was brokered by a CBRE team led by Darcy Stacom and Bill Shanahan.

The developers put the West Side tower up for sale amid a pandemic-driven dip in Manhattan’s office market. They were seeking at least $1 billion, Bloomberg reported in September. The 25-story building is one of the few LEED Platinum offices in the city.

CommonWealth Partners is a major name on the West Coast, but isn’t completely unknown in New York City, as the landlord also owns the 1.7 million-square-foot office tower at 787 Seventh Avenue near Rockefeller Center.

The Baupost Group has been on the selling end of several major deals in the past week alone.
Josh Gotlib’s Black Spruce Management recently agreed to buy the American Copper Buildings from the Baupost Group and Michael Stern’s JDS Development Group for $850 million. Once the deal closes, it will likely represent one of the biggest residential deals in the city since the pandemic began.

[CO] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    (Image by Wolfgang & Hite via Dezeen)
    Hudson Yards megadevelopment inspires a new line of sex toys
    Hudson Yards megadevelopment inspires a new line of sex toys
    Clockwise from top left: 162 West 13th Street, 325 Avenue Y in Brooklyn, 1281 Viele Avenue in the Bronx (Credit: Google Maps)
    Here’s what the $10M-$30M NYC investment sales market looked like last week
    Here’s what the $10M-$30M NYC investment sales market looked like last week
    The Observation Deck at Hudson Yards (Credit: Adam Pogoff)
    Views from 1,100 feet: A tour of Related’s “the edge,” the tallest outdoor observation deck in the Western Hemisphere
    Views from 1,100 feet: A tour of Related’s “the edge,” the tallest outdoor observation deck in the Western Hemisphere
    (iStock/Illustration by Kevin Rebong for The Real Deal)
    NYC investment sales hit multi-year peak to end 2021
    NYC investment sales hit multi-year peak to end 2021
    Tax assessments rise 9%, signaling higher bills for landlords
    Tax assessments rise 9%, signaling higher bills for landlords
    Tax assessments rise 9%, signaling higher bills for landlords
    From left: Ryan Johnson and Jeff Berens, co-founders of Culdesac, in front of a rendering of Culdesac Tempe (Culdesac, iStock)
    Startup that wants to build car-free cities raises $30M Series A
    Startup that wants to build car-free cities raises $30M Series A
    From left: Stephen Schwarzman, chairman, Blackstone; Barry Sternlicht, chief executive officer, Starwood Capital Group (Getty Images, Brookfield Asset Management/Illustration by Steven Dilakian for The Real Deal)
    Blackstone, Starwood to pay $1.5B for WoodSpring Suites properties
    Blackstone, Starwood to pay $1.5B for WoodSpring Suites properties
    Keith Powers, Democratic District 4 representative on the New York City Council, in front of 45 East 45th Street (Getty Images, The Roosevelt Hotel, iStock/Illustration by Steven Dilakian for The Real Deal)
    Local lawmakers aim to landmark shuttered Roosevelt Hotel
    Local lawmakers aim to landmark shuttered Roosevelt Hotel
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...