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Deal Reached for 2nd Most Expensive Office Sale

Deal Reached for 2nd Most Expensive Office Sale

Blackstone has reached, although not completed, a deal to sell 1095 Sixth Avenue in Manhattan to a JV led by Ivanhoe Cambridge for $2.25B. It would be the second biggest individual office sale in US history. Ivanhoe, a Canadian property investor, has been making major inroads into the American market with purchases in New York and Seattle. It's partnering with Callahan Capital on the purchase of the 1.2M SF Midtown skyscraper. Only the $2.8B sale of New York's GM Building in 2008 would dwarf the sale price if the deal closes.

The Wall Street Journal broke news of the deal and noted that it emphasized how foreign investors have become the dominant buyer of prime American office properties. The transaction also continues Blackstone’s strategy of shedding properties it picked up seven years ago in its leveraged buyout of Equity Office Properties Trust. At the same time, the company is sharpening its focus on overseas markets.