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New York

Elefant’s PBC to liquidate $2B in US real estate, including HSBC building

Parent company will invest proceeds in Israel

PBC's Eli Elefant and 452 Fifth Ave (PBC)
PBC's Eli Elefant and 452 Fifth Ave (PBC)

Property & Building Corp. is planning to sell all of its $2 billion in U.S. real estate as its parent company seeks to reinvest in Israel.

PBC, led by Eli Elefant, is seeking a buyer for its assets, most notably the 865,000-square-foot building at 452 Fifth Avenue that serves as the home to HSBC’s main New York office.

The company, an affiliate of Israeli holding company Discount Invest­ment, has tapped Eastdil Secured’s Roy March and Gary Phillips to market the Midtown property. The building is expected to go for at least $850 million, or $982 per square foot, according to sources.

Elefant said PBC’s parent decided to list the properties as it explores an “inward facing strategy,” focusing on investments within Israel.

“Given current interest rates, general market conditions and the abundance of capital, we believe it’s a good time to be a seller of these assets,” said Elefant.

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PBC also plans to sell off Tivoli Village, a high-end retail office complex in Las Vegas that is valued at around $300 million. The development is close to 80 percent leased and is near Howard Hughes Corporation’s Summerlin master-planned community.

In addition, PBC plans to sell commercial, residen­tial, office and retail space and land in the West valued at around $300 million. It also is selling an industrial portfolio with 16 buildings totaling 2.1 million square feet along with securities, including loans, valued at around $200 million.

Real Estate Alert first reported that PBC is listing its assets.

PBC bought 452 Fifth Avenue for $330 million, or $381 per square foot, in 2010 from HSBC as the bank was looking at selling office properties in wake of the financial crisis. The site also includes a 10-story Beaux-Arts Knox Building constructed in 1902.

PBC spent more than $100 million renovating the tower, including on a new entrance and lobby as well as the high-rise elevators. In 2017, HSBC inked a deal to remain in its 548,000-square-foot space at the tower until 2025. The news was good news for PBC, which dismissed rumors then that the property was heading to the market.

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Commercial Real EstateFifth Avenue