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Hines closes on $1B office tower sales

The New York office of Hines, announced that a subsidiary of the Hines U.S. Core Office Fund LP closed on the sale of 499 Park Avenue to an institutional fund managed by American Realty Advisors.

The Core Fund also closed on the sale of 425 Lexington Avenue to institutional investors advised by J.P. Morgan Asset Management.

Exact sale prices of each building were not disclosed; however, the combined sale price totaled more than $1 billion.

Eastdil Secured, L.L.C. and CBRE jointly represented the Core Fund in both transactions.

425 Lexington

Tommy Craig, senior managing director of Hines’ New York Office, said, “We are pleased to expand our relationship with American Realty Advisors, and to continue our long-standing global relationship with J.P. Morgan. We will continue to build on our high level of activity in New York with further investment and development opportunities.”

499 Park

Sherri Schugart, senior managing director and president and CEO of Hines’ Core Fund, said, “These trophy assets delivered exceptionally strong returns to our investors.”

499 Park, located at 59th Street and Park Avenue, is one of the city’s premier boutique office buildings. The 28-story, 300,000 s/f tower was designed by I.M. Pei & Partners and completed in 1980.

425 Lexington is a 31-story, 750,000 s/f office building designed by Murphy/Jahn.

The property has enjoyed 100 percent occupancy since its development in 1987, and the original anchor tenants, Simpson Thacher & Bartlett LLP and CIBC, continue to occupy the building.

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