Deals

Carlyle to buy NYC retail spot for $525m – report

The world’s second largest private equity firm is reportedly preparing to buy the retail portion of an office tower in Manhattan.

By
Dave Keating
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The Carlyle Group is about to buy the retail portion of a Manhattan office tower, according to a report today by Bloomberg.

Sources told the news service that Carlyle would by the retail portion of 666 Fifth Avenue in New York for $525 million (€336 million). The transaction would help the owner, real estate investor and New York Observer publisher Jared Kushner, repay debt. Kushner purchased the building last year for $1.8 billion.

The sources said that Crown Acquisitions would be brought on as a leasing partner.

666 Fifth Avenue is made up of 1.5 million square feet and has about 90,000 square feet of ground-floor retail space, with three main stores. Those spaces are currently occupied by the National Basketball Association store, Hickey-Freeman, and Brooks Brothers, which has reportedly agreed to move out next year.

Earlier this month Carlyle acquired nearby 650 Madison Avenue for $680 million with Ashkenazy Acquisition.
Both Kushner and Carlyle declined to comment on the report.