Teachers is about to buy Hines' 55 2nd, and the price we are hearing for the 25-story building is sky high compared to its last trade in 2004. (We're surprised, considering our Hoobastank cassette from that very same year seems to have taken an opposite trajectory.)
Teachers, or TIAA-CREF, is expected to close on the tower next month for about $725/SF to $730/SF, or up to $276M, sources tell us. Hines bought the property back in 2004 with equity partner Sumitomo Real Estate of Japan for just $146M, also picking up 101 Second for close to that from Cousins/Myers. Eastdil marketed 55 2nd for Hines as part of a recap plan, and we hear it was a competitive process. Known as the KPMG Building, the structure was completed in 2002 and designed by Heller Manus. Aside from the accounting giant, law firm Paul Hastings also resides there.
In January, Invesco picked up 101 Second for $297M. The SOM-designed, 26-story office asset pulled in a whopping 20 interested buyers in 30 days on the market, we reported. The 14-year-old building features a dramatic glass-clad, four-story atrium that serves as an art pavilion (pictured). The sales price ($765/SF) was more than two times what Hines paid back in 2004. Sources tell us it's common these days to command $750/SF for prime downtown assets.
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