HNA Wants To Shed $4B Worth Of U.S. Properties, Including $2.2B 245 Park

Chinese conglomerate HNA Group is marketing billions of dollars worth of commercial real estate as it tries to offload debt, including skyscrapers in Manhattan and San Francisco.

HNA completed the biggest office building sale in the U.S. in 2017 when it acquired 245 Park Ave. in Manhattan for $2.2B from Brookfield, one of the biggest single-asset transactions in city history. Less than a year later, 245 Park is back on the market, alongside several U.S. properties totaling $4B. Other assets include 850 Third Ave. in Manhattan and 123 Mission St. in San Francisco, Bloomberg reports.

HNA's move to place the properties on the market comes amid a plan to shed more than $16B in real estate around the world in the first half of 2018. The Chinese government put strict controls on outbound investment in 2016, and restricted investment even further last summer. HNA and Dalian Wanda, another of China's major real estate buyers in recent years, have both been targeted by the government and have plans for major asset sell-offs.

HNA's $4B offering is being marketed by HFF, according to Bloomberg, and includes six office assets and a Manhattan hotel, the Cassa. The big prize is 245 Park, a 1.7M SF tower that is home to offices of JPMorgan Chase and Heineken.

While Google recently paid around $2.5B for the 1.2M SF Chelsea Market building elsewhere in Manhattan, the market for Manhattan office buildings has become far less frothy without Chinese buyers joining most bidding wars.

With lots of equity waiting to invest in Manhattan real estate, HNA will not likely have trouble finding a buyer. Whether it will be able to match the $1,227/SF price paid a year ago is less certain.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Success Of Top-Tier Malls Masks Enduring Distress In Sector's Underbelly

HUD Launches Investigation Into Wells Fargo's Efforts To Support Black Homeownership

Delaware Statutory Trust Fundraising Jumps 27% From 2025

Bank OZK Shares Drop After Citi Flags $915M Mortgage Concern

Tishman Speyer Retakes Chrysler Building, Plans $235M Renovation

Activist Investor Buys Stake In Empire State Building Owner

Soaring Yields Strand REITs In M&A No-Man's-Land

San Francisco Office Market Climbs, Fueling Demand For Large Blocks, Luxury Space

How UK Investment Giant L&G Plans To Grow Its U.S. Multifamily Holdings

Properties Owned By REIT Accused Of Fraud To Be Auctioned Off

DRA Buys Stake In 1301 Sixth Ave. At $1.3B Valuation: The N.Y. Deal Sheet

LS Power Raises $6B To Capitalize On Data Center Power Demand