HNA buys in Chicago, looks to sell in NYC

HNA Group is having an active real estate season in the US.

Last week, the Haikou, China-based company said it was looking to sell its stake in 1180 Avenue of the Americas, a 22-story New York building. The Chinese conglomerate bought a 90 percent interest in the Midtown office property for $259 million in 2011, comprised of an 85 percent stake from private equity firm The Carlyle Group and a 5 percent interest from a local developer.

The 398,000 square foot building is fully occupied, with anchor tenant Scripps, a media company, occupying 126,000 square feet through 2021.

“Due to the strong NYC real estate market fundamentals, the value of 1180 is anticipated to continue to increase,” HNA said in a statement Friday.

In Chicago, the firm bought a 50-story office building at 181 West Madison Street from Los Angeles-based CBRE Global Investors for $359 million, according to RCA. CBRE GI had purchased the building in November 2013 for $302 million.

A CBRE spokeswoman declined to comment, but PERE understands the firm bought the building with capital from by CBRE Strategic Partners US Value 6. The value-added fund closed in December 2012 on $1.1 billion, the firm said at the time.

The Chicago office, at 181 West Madison, is a 940,000 square foot building built in 1989 and renovated in 2014, according to RCA. The tower is home to anchor tenant Northern Trust Bank. Amenities include a fitness center, bike sharing and car wash.

The Chicago acquisition and New York disposition come as HNA continues to expand its US presence. Last week, the firm agreed to acquire a 24.95 percent stake in OM Asset Management, Old Mutual’s US asset management business, for approximately $446 million, PERE reported. In March, HNA led a joint venture group that agreed to acquire 245 Park Avenue, a 45-story office tower in New York, from Brookfield Asset Management and New York State Teachers’ Retirement System, for $2.2 billion.