Miami Investment Firm Buys Stake In NYC's MHP Real Estate To Form $3B Joint Venture
A New York City landlord and brokerage is merging with a Miami-based investment firm in a deal to form a $3B company with offices up and down the East Coast.
MHP Real Estate Services has joined forces with Banyan Street Capital after the NYC firm, formerly known as Murray Hill Properties, sold an undisclosed part of the company to Banyan Street, Commercial Observer reports.
Along with the transaction, longtime MHP co-founder Norman Sturner is stepping down from his role as CEO and president, becoming the firm's chairman and naming his son, David, as the new CEO. MHP's New York City portfolio is 99% leased, Norman Sturner said in a statement accompanying the merger announcement, and the deal would allow a new source of capital for MHP and entrance into NYC for Banyan Street.
"MHP’s and Banyan Street’s respective businesses are very similar and complementary,” Banyan Street CEO Rudy Touzet said in a statement. “In combination, we will look to take advantage of these synergies, we will continue to be premier owners and operators of office buildings in our markets.”
In the last two years, Banyan Street has acquired stakes in a 32-story office building in Atlanta, a 380K SF office building in downtown Baltimore and a two-building, 332K SF office complex in Tysons, Virginia, outside of Washington. The firm has offices in Jacksonville, Florida, Atlanta and Boston.
The two firms will operate as partners under their individual brands, and MHP will retain its brokerage staff, which recently underwent some upheaval when the Sturners parted ways with their longtime director of leasing David Greene, CO reported.