HNA Property Holdings LLC, the real estate investment and management subsidiary of HNA Group, announced it is planning to sell its stake in the office building at 1180 Avenue of the Americas, in Midtown Manhattan. The 400,000-square-foot property is currently 100% leased, with the anchor tenant occupying approximately 126,000 square feet through November 2021.
The Chinese conglomerate purchased a 90% stake in the 54-year-old Avenue of the Americas Class A office tower in 2011 for $259 million. Murray Hill Properties held the minority stake at that time – it is not clear if MHP is also planning on marketing its share.
HNA anticipates the value of 1180 6th Ave to continue to increase, as per recent CBRE data on the Midtown Manhattan office for lease market, which shows the market’s overall vacancy rate was 8.1% as of February 2017 and had average asking rents at over $80.00 per square foot. The numbers translate to a 60% increase in average rents since 2009.
This announcement comes days after The Real Deal first reported that HNA is in contract to acquire 245 Park Avenue for $2.21 billion, with a yet undisclosed venture partner. If it closes, the purchase of the 1.8 million-square-foot property would be one of the priciest acquisitions of a Manhattan skyscraper and land 245 Park among the few single assets to command over $2 billion.
The Park Avenue tower, sold by Brookfield Property Partners and the New York State Teachers’ Retirement System, would be HNA Group’s third Manhattan asset. Last year, the conglomerate made our 2016 top office investor list with the purchase of the 21-story, 600,000-square-foot office building at 850 3rd Ave, in a $463 million joint venture with MHP.
TRD sources indicated that the Chinese conglomerate may be shifting assets in order to optimize its portfolio by focusing on trophy assets and reducing exposure in the New York commercial real estate market.
Looking for the perfect space for your business? Head over to CommercialCafe and start your search!