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

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

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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.