German firm Allianz buys 43% stake in Midtown tower valued at $1.95B

Allianz Real Estate, a subsidiary of German asset manager Allianz Group, has acquired a 43 percent stake in Midtown office tower 1515 Broadway.

The deal values the 54-story building, located between 44th Street and 45th Street, at $1.95 billion or $1,045 per s/f. According to SL Green, which will retain a majority stake in the tower, approximately 70 percent of the transaction is expected to close at the end of the month. The remainder will be completed in the first quarter of next year. After the deal closes, SL Green will get cash proceeds of $416 million.

“1515 Broadway has been an extraordinary investment for SL Green and we are delighted to collaborate with our new joint venture partner, Allianz, in one of New York City’s truly special buildings.” said SL Green Co-CIO Isaac Zion.

“Allianz’s investment in 1515 Broadway represents a unique and exciting opportunity to partner with SL Green and add an attractive trophy asset, with significant upside in the coming years, to our growing portfolio in New York City,” added Christoph Donner, Allianz Real Estate’s CEO.

SL Green was part of a joint venture that acquired the building in 2002. The company paid $483.5 million for its 55 percent share of the partnership. In 2011, it bought out its partners in a deal worth $1.2 billion.

The property contains the international headquarters of media conglomerate Viacom. The firm’s lease in the building runs until 2031. The tower also houses the Miskoff Theater, which is home to the Disney musical “The Lion King.” Retail tenants in the building include Skechers, Swatch, Oakley, Kiko Milano, and Line Friends.

Cushman and Wakefield’s Doug Harmon and Adam Spies represented SL Green in this transaction.

 

 

Comments are closed

COPYRIGHT 2015 REAL ESTATE WEEKLY. ALL RIGHTS RESERVED.