After landing on JPMorgan Asset Management to buy 425 Lexington Avenue, Hines is in negotiations with American Realty Advisors to sell another office property in midtown Manhattan from its US Core Office Fund.
According to the Houston-based real estate investment firm, the Glendale, California-based investment advisor is buying 499 Park Avenue, a 28-story boutique office property at 59th Street, on behalf of its open-ended vehicle, the American Core Realty Fund. Although the price for the 300,000-square-foot tower has not been disclosed, the combined sales price of the two transactions will total more than $1 billion.
The deal with American Realty Advisors immediately follows Hines entering negotiations with JPMorgan to purchase 425 Lexington. The investment management arm of the US banking giant is purchasing that property on behalf of undisclosed institutional investors. Representatives from JPMorgan declined to comment.
Tommy Craig, senior managing director of Hines’ New York office, said: “We are excited to expand our relationship with American Realty Advisors through the sale of 499 Park Avenue and to continue our longstanding global relationship with JPMorgan Asset Management through the sale of 425 Lexington.”
Built in 1980, 499 Park Avenue currently is 95 percent occupied by tenants that include M. Safra, Cantor Fitzgerald and Hines. The US Core Office Fund acquired the property in August 2003 from Sumitomo Life Realty for $147.8 million, according to data provider Real Capital Analytics.
Eastdil Secured and CBRE jointly represented Hines in both deals. Hines anticipates closing both transactions this summer.