BGO Hands Third Avenue Office Tower To Lender
BGO, one of the world's largest real estate investment managers, has parted ways with a 26-story Midtown East office tower.
BGO transferred the 503K SF office building at 757 Third Ave. building to its lender, New York Life Real Estate Investors, via a deed-in-lieu of foreclosure agreement, according to city property records.
The transfer was valued at $173.1M, according to the filing, but PincusCo reported via an unnamed source that it traded for closer to $150M.
Melanie Domres, president of BGO subsidiary NewTower Trust, signed for the seller, according to Commercial Observer, which first reported the filing. New York Life Director of Transactions Carter Anatole signed for the buyer.
BGO, formerly BentallGreenOak, and New York Life Real Estate Investors didn't immediately respond to Bisnow’s request for comment.
The office building’s total occupancy levels are unclear, but the property has scored some tenants in recent years.
Reinsurance broker BMS Group expanded by 6K SF last year, bringing its footprint at the building to 13K SF, while software company Endava grew from 5K SF to 7K SF and the Consulate General of Portugal moved into 7K SF in the building.
A listing on JLL’s website says the building has more than 50K SF available for lease. A spokesperson for JLL declined to comment.
BGO bought 757 Third in 2015 for $360M from RFR Holding and financed the purchase with a $205M, 15-year, fixed-rate mortgage from New York Life.
The Third Avenue property isn’t the only Manhattan office tower that BGO is letting go of. A joint venture between BGO and Multi-Employer Property Trust went under contract to sell 101 Greenwich St., a 400K SF office in the Financial District, to Idan Ofer's Quantum Pacific Group for north of $100M, Commercial Observer reported at the time.
That deal still hasn't closed, according to the city register.
