Jones Lang LaSalle
Colliers ABR-AEW Capital Management JV Scores Manhattan Offices for $100M
February 15, 2006
By Paul Miller, News Editor
In a $100 million acquisition, a joint venture between Colliers ABR Inc. and AEW Capital Management L.P. jointly said this afternoon that it has obtained a 22-story block-thru office tower at 119 West 40th St. and a five-story building with additional development rights at 120 West 41st St., both in midtown Manhattan. AEW acquired the property on behalf of AEW Partners V L.P., a real estate opportunity fund.
The 22-story building on West 40th Street (pictured) is 327,650 square feet; the other building consists of 15,000 square feet, but is zoned for up to 50,000 additional square feet. It is 88 percent occupied, with one-third of it leased to investment grade tenants. With its additional air rights, the West 41st Street building gives the joint venture several redevelopment opportunities. Existing rents in the building are below-market and there are significant near-term lease expirations.
For the Colliers-AEW partnership, the companies' strategy in obtaining buildings like these is to source off-market deals through their respective network of contacts. "We sourced this transaction through information obtained from people on staff and others," Bob Billingsley, Colliers-ABR's vice chairman, told CPN this afternoon. "We pieced together the facts and like a detective story we put the pieces together and solved the case."
The companies were drawn to the buildings because they are close to public transportation and are not well-known. That, he said, "will allow us to re-position them from scratch."
The acquisition is the second for the Colliers-AEW joint venture, the first for 229 W. 28 St. in Manhattan having closed late last year. In addition to last year's deal and the new one, the joint venture aims to acquire more than $300 million in assets, concentrating on opportunities where investment returns can be generated by effectively managing leasing risk, development risk and market risk. The joint venture will seek existing Class B office and retail properties, as well as development sites in strategic locations near major transportation hubs.
Colliers ABR-AEW Capital Management JV Scores Manhattan Offices for $100M
February 15, 2006
By Paul Miller, News Editor
In a $100 million acquisition, a joint venture between Colliers ABR Inc. and AEW Capital Management L.P. jointly said this afternoon that it has obtained a 22-story block-thru office tower at 119 West 40th St. and a five-story building with additional development rights at 120 West 41st St., both in midtown Manhattan. AEW acquired the property on behalf of AEW Partners V L.P., a real estate opportunity fund.
The 22-story building on West 40th Street (pictured) is 327,650 square feet; the other building consists of 15,000 square feet, but is zoned for up to 50,000 additional square feet. It is 88 percent occupied, with one-third of it leased to investment grade tenants. With its additional air rights, the West 41st Street building gives the joint venture several redevelopment opportunities. Existing rents in the building are below-market and there are significant near-term lease expirations.
For the Colliers-AEW partnership, the companies' strategy in obtaining buildings like these is to source off-market deals through their respective network of contacts. "We sourced this transaction through information obtained from people on staff and others," Bob Billingsley, Colliers-ABR's vice chairman, told CPN this afternoon. "We pieced together the facts and like a detective story we put the pieces together and solved the case."
The companies were drawn to the buildings because they are close to public transportation and are not well-known. That, he said, "will allow us to re-position them from scratch."
The acquisition is the second for the Colliers-AEW joint venture, the first for 229 W. 28 St. in Manhattan having closed late last year. In addition to last year's deal and the new one, the joint venture aims to acquire more than $300 million in assets, concentrating on opportunities where investment returns can be generated by effectively managing leasing risk, development risk and market risk. The joint venture will seek existing Class B office and retail properties, as well as development sites in strategic locations near major transportation hubs.
posted by Jones Lang LaSalle NJ News Blog at 9:59 AM
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