Jones Lang LaSalle
A DUBAI-ING SPREE IN N.Y.
By LOIS WEISS
Between The Bricks
DUBAI may have lost its U.S. port deal, but that hasn't stopped it from snapping up prime New York office buildings.
Dubai investment firm Istithmar, which means "investment" in Arabic, is now gobbling up city office buildings in a scenario New Yorkers might think of as déjà vu Japan all over again.
The latest $2.2 billion deal, we hear, is a direct grab for two Class A office towers owned by Mortimer Zuckerman's Boston Properties at $1,000 a foot. The cap rate would tally at 4.25 percent. A senior executive did not return a call for comment.
The first of Zuckerman's Dubai deals - at Five Times Square, a 2002-era 1.1 million-foot tower - is fully leased to Ernst & Young plus a few smaller tenants including former Mayor Rudy Giuliani's firm, Giuliani Partners, as well as retailers such as Red Lobster.
It should throw off $1 billion in cash flow through 2019, a report in Commercial Real Estate Direct said.
According to CoStar Group data, the twin buildings totaling 1.04 million feet at 280 Park Ave. are home to Deutsche Bank and the National Football League.
"They had gone to the market, interviewed three brokerage firms - CB Richard Ellis, Cushman & Wakefield and Eastdil Secured - and then went radio-silent," advised one top city real estate exec.
At a Left Coast gathering earlier this week, Sam Zell warned of a stealth deal in the city, and those aware of the transaction cautioned it was still a "rumor."
Nevertheless, it fits the previous deal run by Istithmar's U.S. advisory Andrew Farkas, who preempted offers for 230 Park Ave. late last year with a bid of $704 million.
Another firm tied to the Dubai government also purchased the Essex House hotel.
The Chairman of the Board of Istithmar, Sultan Ahmed Bin Sulayem, is also the executive chairman for the Dubai Ports, Customs and Free Zone Corp., and of Nakheel, the company constructing The Palm and The World Islands off the Gulf.
A DUBAI-ING SPREE IN N.Y.
By LOIS WEISS
Between The Bricks
DUBAI may have lost its U.S. port deal, but that hasn't stopped it from snapping up prime New York office buildings.
Dubai investment firm Istithmar, which means "investment" in Arabic, is now gobbling up city office buildings in a scenario New Yorkers might think of as déjà vu Japan all over again.
The latest $2.2 billion deal, we hear, is a direct grab for two Class A office towers owned by Mortimer Zuckerman's Boston Properties at $1,000 a foot. The cap rate would tally at 4.25 percent. A senior executive did not return a call for comment.
The first of Zuckerman's Dubai deals - at Five Times Square, a 2002-era 1.1 million-foot tower - is fully leased to Ernst & Young plus a few smaller tenants including former Mayor Rudy Giuliani's firm, Giuliani Partners, as well as retailers such as Red Lobster.
It should throw off $1 billion in cash flow through 2019, a report in Commercial Real Estate Direct said.
According to CoStar Group data, the twin buildings totaling 1.04 million feet at 280 Park Ave. are home to Deutsche Bank and the National Football League.
"They had gone to the market, interviewed three brokerage firms - CB Richard Ellis, Cushman & Wakefield and Eastdil Secured - and then went radio-silent," advised one top city real estate exec.
At a Left Coast gathering earlier this week, Sam Zell warned of a stealth deal in the city, and those aware of the transaction cautioned it was still a "rumor."
Nevertheless, it fits the previous deal run by Istithmar's U.S. advisory Andrew Farkas, who preempted offers for 230 Park Ave. late last year with a bid of $704 million.
Another firm tied to the Dubai government also purchased the Essex House hotel.
The Chairman of the Board of Istithmar, Sultan Ahmed Bin Sulayem, is also the executive chairman for the Dubai Ports, Customs and Free Zone Corp., and of Nakheel, the company constructing The Palm and The World Islands off the Gulf.
posted by Jones Lang LaSalle NJ News Blog at 11:10 AM
<< Home