A partnership between Rockwood Capital, Jamestown, Murray Hill Properties and Crown Acquisitions has entered into a contract to sell 530 Fifth Avenue in Manhattan to Thor Equities for $595 million, more than $200 more than it paid for the property just three years ago. The deal is expected to close in mid-September.
The 26-story building occupies the entire western block of Fifth Avenue between 44th and 45th streets, containing approximately 480,000 square feet of office space and 55,000 square feet of retail space. Office tenants include Massachusetts Mutual, Diageo North America, Cablevision, Lionsgate and Athyrium Capital. Current retail tenants include Desigual, JPMorgan Chase and Fossil.
“Fifth Avenue always will serve as an iconic location in New York City for retail and office space,” said Michael Phillips of Jamestown in a statement. “Once we repositioned the 530 Fifth Avenue property with a renovated lobby, internal upgrades and amenities, it was with Eastdil’s guidance that we saw an opportunity to monetize the asset.” A source familiar with the situation noted that broker Eastdil marketed and sold the property within six to eight weeks.
Rockwood, Jamestown, Murray Hill and Crown originally purchased the building in early 2011 for $390 million. Since the acquisition, the ownership team has invested more than $10 million to modernize the building’s infrastructure, including renovations to the building’s lobby, HVAC system, elevators and common areas.
“530 Fifth Avenue’s dynamic location and architectural features have provided a strong foundation from which to reposition this building as a top-tier asset,” Rockwood managing director Joe Gorin said in the statement. “This property epitomizes Rockwood’s strategy of investing in well-located real estate that provides an opportunity to outperform over the long term.” Rockwood purchased its stake in the property on behalf of Rockwood Capital Real Estate Partners Fund VIII, which closed on $964 million of equity in 2009.