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CIM Group JV sells NYC office building for $225m

The Los Angeles-based private equity real estate firm had acquired the property less than three years ago.

Los Angeles-based private equity real estate firm CIM Group and Kushner Companies are selling a New York City office building to another joint venture comprising pension fund manager Bentall Kennedy and a local developer, according to media reports.

CIM, which has about $20.5 billion in assets under management, and New York-based developer Kushner Companies bought the 26-story building at 2 Rector Street in June 2013 for $140 million, according to real estate data provider Real Capital Analytics (RCA).

Built in 1909 and renovated in 1990, the building is located in Manhattan’s Financial District. The property is anchored by mortgage company Global Home Loan & Finance and ITHAKA, the publisher of the higher-education online database JSTOR, according to RCA. Last July, the owners submitted an application to the city to convert the 440,000 square foot building into 452 apartments but did not follow through on the conversion, according to media reports.

Two Rector Street’s new owners are a joint venture between Toronto-based pension fund manager Bentall Kennedy and New York-based developer Cove Property Group. Bentall Kennedy has about C$30 billion ($22.4 billion) in real estate assets under management, according to its website.

CIM and Bentall Kennedy declined to comment on the transaction. Cove Property Group and Kushner Companies could not be reached for comment.