The sluggish office-building sale market acquired a half-billion-dollar reward — not from Santa, however from the world’s largest reinsurance firm.
Munich Re quietly purchased out its joint-venture accomplice Mutual of America at 320 Park Avenue, the 760,000 square-foot tower between East fiftieth and 51st streets, The Submit has discovered.
Munich Re had beforehand owned 25% of the fully-leased property.
The deal displays the power of Park Avenue north of forty second Avenue, the place most buildings are totally leased to prime tenants.
The tower is occupied by Mutual of America, which has been headquartered there because it purchased the constructing in 1992, together with Raymond James and some different monetary corporations.
As an inner partnership transaction, the acquisition received’t be posted on the town Finance Division ACRIS web site. However market sources estimated the worth at between $500 million and $525 million — a quantity that values the whole constructing at roughly $700 million, or round $900 per sq. foot.
Mutual of America introduced Munich Re in as a minority accomplice by Munich’s asset supervisor MEAG in 2021. MEAG put $40 million into upgrades, together with a brand new foyer, a tenants’ facilities flooring and enhancements to almost half of the constructing’s flooring.
Munich Re additionally owns 330 Madison Ave. the place, as The Submit reported in August, it paid off the half-billion greenback mortgage in money.
“Think of it,” a brokerage supply stated. “Between that and now 320 Park, they put a billion dollars into the city in less than six months.”
The deal can be one of many largest workplace buy within the metropolis this 12 months, when values have continued to hunch after the pandemic.
For instance, Morgan Stanley is taking a shower on the sale of two Park Ave. to Haddad Manufacturers for $360 million — in contrast with the $519 million it paid for it in 2007, the Actual Deal reported final week.
Earlier Manhattan workplace purchases this 12 months had been really eclipsed by just a few spectacular retail offers, most notably, Gucci dad or mum Kering’s $963 million acquisition of a mere three flooring at 715-717 Fifth Ave. from Jeff Sutton in January.
Mutual of America was represented by a JLL crew of Frank Doyle, David Kleiner and David Giancola. Munich Re was suggested by its asset supervisor, MEAG.
JLL vice-chairman Doyle described 320 Park Ave. as “a prime example of the standout Class-A office properties that are overperforming in the current market. It offers a superior location, premier amenities, and best-in-class ownership, making it highly attractive to top tenants.”
