Mexican billionaire Carlos Slim has closed on a prime New York office building at 417 Fifth Avenue for $140 million, according to Cushman & Wakefield.
The 412,000-square-foot property is located close to Grand Central Terminal in Manhattan. According to Cushman & Wakefield, foreign buyers accounted for 15 percent of the $4.2 billion of property sales closed or under contract in the year to June. Private capital accounted for 35 percent of all acquisitions, REITs 34 percent and pension funds and owner-occupiers just 8 percent.
Ashkenazy reportedly fought off bids from around 50 interested parties to acquire the property with Crown Acquisitions and Highgate Holdings.
Istithmar last year lost control of the W Union Square Hotel to LEM Mezzanine, a mezzanine fund affiliated with Lubert-Adler Real Estate, in a foreclosure auction. LEM Mezzanine said at the time it acquired the hotel after a series of defaults by Istithmar. The Philadelphia-based firm reportedly paid just $2 million for the central New York City hotel, with the assumption of $212 million in debt.
In March, Istithmar also reportedly handed the keys back to the Knickerbocker Hotel after it defaulted on a $300 million loan. Originally used as a hotel, the Knickerbocker has most recently been occupied as an office building. Istithmar was midway through a plan to revert its use back to a hotel and as such, has not been renewing leases.
Istithmar had also purchased an adjoining site for $76 million as part of its strategy to transform the site.