JPMorgan Asset Management is buying a midtown Manhattan skyscraper for $650 million. The investment management arm of the New York-based banking giant is acquiring the 31-story, 750,000-square-foot office tower from Hines.
Although a report from Crain's New York Business listed the price at approximately $750 million, sources familiar with the matter told PERE that the price is closer to $650 million. Representatives from JPMorgan and Hines declined to comment.
At press time, it is unclear if JPMorgan is purchasing the property, located at 425 Lexington Avenue between East 43rd and East 44th streets, on behalf of an institutional client.
The building is one of two midtown office towers that Houston-based Hines is auctioning off, the other one being 499 Park Avenue. Built in 1987, tenants in 425 Lexington include global law firm Simpson, Thatcher & Bartlett and the Canadian Imperial Bank of Commerce.
In August 2003, the Hines US Core Office Fund, a partnership between Hines and Sumitomo Life Realty, acquired 425 Lexington from Sumitomo Life Realty. Hines bought the property on behalf of the fund for $346 million, according to data provider Real Capital Analytics.