Commerzbank has purchased 222 East 41st Street from Columbia Property Trust for $332.5 million.
Commerz Real, the real estate investment arm of the German bank closed on the deal for the 25-story office tower this week. CBRE’s Capital Markets team, including Darcy Stacom and Bill Shanahan, represented Columbia in the marketing effort and transaction.
Totaling 390,000 s/f, the Midtown East building was built in 2001 as an office tower but NYU Langone Medical Center began converting it into a multispecialty ambulatory care facility two years ago.
Prior to that, the building was nearly fully occupied by one tenant since 2007. With that lease set to expired in 2016, Columbia orchestrated a proactive and wide-ranging marketing campaign, eventually culminating in a 30-year lease to NYU Langone for the entire building. There was almost no gap in occupancy.
The new center began accepting patients last month.
“We were very pleased to secure an esteemed tenant on a long-term lease, which significantly increased the value of the property,” said Nelson Mills, president and chief executive officer of Columbia. “Proceeds will further strengthen our balance sheet in the near term and will eventually be recycled into higher growth investment opportunities.”