The New York office of Hines, announced on Tuesday that a subsidiary of the Hines U.S. Core Office Fund (Core Fund) closed on the sale of 499 Park Avenue to an institutional fund managed by American Realty Advisors. The Core Fund also closed on the sale of 425 Lexington Avenue to institutional investors advised by J.P. Morgan Asset Management. Exact sale prices of each building were not disclosed; however, the combined sale price totaled more than $1 billion, generating a sizeable return on investment for the Core Fund and its investors.
Tommy Craig, senior managing director of Hines' New York Office, said, "We are pleased to expand our relationship with American Realty Advisors, and to continue our long-standing global relationship with J.P. Morgan. We will continue to build on our high level of activity in New York with further investment and development opportunities."
499 Park, located at 59thStreet and Park Avenue, is one of the city's premier boutique office buildings. The 28-story, 300,000-square-foot tower was designed by I.M. Pei & Partners and completed in 1980.
425 Lexington is a 31-story, 750,000-square-foot office building designed by Murphy/Jahn. The property has enjoyed 100 percent occupancy since its development in 1987, and the original anchor tenants, Simpson Thacher & Bartlett LLP and CIBC, continue to occupy the building.
J.P. Morgan Asset Management - Global Real Assets has approximately $66.7 billion in assets under management and more than 400 professionals in the U.S., Europe and Asia, as of March 31, 2013. American Realty is an investment advisor, and a leading provider of real estate investment management services to institutional investors. With over $5.3 billion in assets under management, American has provided real estate investment management services to institutional investors for over 25 years utilizing core and value-added commingled funds and separate accounts. Hines is a privately owned real estate firm involved in real estate investment, development and property management worldwide. With offices in 113 cities in 18 countries, and controlled assets valued at approximately $24.3 billion, Hines is one of the largest real estate organizations in the world.