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SJP sells slice of 11 Times Square to Norwegians for $630M

Prudential Real Estate Investors and SJP Properties have sold a 45 percent interest in Eleven Times Square Norges Bank Investment Management, an offshoot of Norway’s central bank.

11 Times Square
11 Times Square

The deal for a stake in the state-of-the-art, 1.1 million-square-foot office and retail tower in Midtown was based on a gross value of $1.4 billion, according to SJP, which would calculate to around $630 million for 45 percent ownership.

PREI is the real estate investment and advisory business of Prudential Financial, Inc. As part of the transaction, the partnership will continue to own and control the building, while SJP Properties, as the operating partner, will continue to manage, lease and operate the building. SJP will also maintain its headquarters at the tower. 

The minority sale to Norges Bank Investment Management followed a marketing process led by CBRE, which the sellers said attracted significant interest from a global roster of international organizations and sovereign wealth funds.  CBRE’s Darcy Stacom and William Shanahan led the marketing effort. Other terms of the transaction were not disclosed. 

“The strength of the tenant roster and the state-of-the art features at Eleven Times Square, combined with its central location in the heart of New York City, allowed us to capitalize on the strong investor demand for core office properties in New York,” said Kevin R. Smith, a PREI senior managing director and head of the Americas business.

“This transaction gives us the opportunity to retain control of this trophy asset with our long-term partner SJP while also allowing PREI to redeploy capital into other core investments that provide steady returns for our investors.”

“This transaction is reflective of Eleven Times Square’s position as a premier destination for leading global and local companies,” commented Jeff Schotz, executive vice president for SJP Properties. “Given the success of our leasing program and robust demand for our remaining premium tower space, we believe that now is an appropriate time to recapitalize the building as we continue to look for opportunities to further expand our New York metropolitan area market presence.”

Completed in 2010 and  located at the intersection of Eighth Avenue and 42nd Street, the LEED-Gold-certified Eleven Times Square, inclusive of signed leases and current activity, will be approximately 90 percent leased. The property is anchored by Microsoft Corp. and global law firm Proskauer, along with a diverse roster of tenants across the finance, technology, legal, and media industries.

“SJP Properties operates this magnificent building with a level of integrity, professionalism and responsiveness that is truly unmatched,” said Ron Sernau, chairman of the Real Estate Department at Proskauer.

Eleven Times Square features precedent-setting LEED Platinum-level indoor air quality and a highly efficient glass curtain wall, along with innovative concrete core construction that supports the building’s infrastructure and provides enhanced safety. The building’s services include a high-tech, state-of-the-art elevator dispatch system that minimizes tenant wait and is integrated with the building’s security system; an advanced visitor check-in system; a large, secured, fully-efficient loading dock; and a messenger/mail center and delivery area specifically designed to maximize ease of use by tenants. The building’s office space features floor-to-ceiling windows and column-free corner offices, as well as multiple private terraces.


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