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TH Real Estate completes sale of 685 Third Avenue to Japanese investor

685 Third Avenue

TH Real Estate has closed the sale of 685 Third Avenue, a 651,492 sq ft (c.60,526 sq m), office building with ground level retail in Midtown Manhattan, New York.

The buyer is UNIZO Holdings Company, Limited, a listed real estate company based in Tokyo, Japan. The gross sale price was $467.5m. TH Real Estate acquired the 31-story office building as a value-add investment in July 2010 from Pfizer for $190m, when it was virtually vacant. An ambitious asset management plan was developed and a 49.99% interest was sold to Future Fund, Australia’s sovereign wealth fund.  

From 2011 to 2013, TH Real Estate executed a complete repositioning of the building which included renovations to the building’s lobby, an improved pocket park, and the addition of fast-casual dining, such as Luke's Lobster. The follow-on office leasing program ultimately attracted a wide array of tenants including Sales Force, Tribune, and Crain’s. A recently executed lease for the corner retail unit by artisanal bakery Maison Kayser brought the overall occupancy level to 93%.   

"Taking a creative approach to unlocking value in New York City office buildings is a fundamental capability for us," said Giacomo Barbieri, TH Real Estate’s Managing Director and Regional Head, New York Metro Investments. "The successful redevelopment combined with the property's central Grand Central/UN submarket location and strong tenancy resulted in multiple offers from a mix of foreign and domestic institutional investors. We believe this is a testament to the continued demand for well-positioned New York office assets, despite the maturity of the cycle."  

This is UNIZO’s sixth New York City purchase. CBRE’s Bill Shanahan and Darcy Stacom represented TH Real Estate in this transaction.

 

TH Real Estate is a name under which Nuveen Real Estate Management Limited provides investment products and services. TH Real Estate is an investment affiliate of Nuveen, LLC (“Nuveen”), the investment management arm of TIAA. Issued by Nuveen Real Estate Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority. TH Real Estate is a name under which Nuveen Real Estate Management Limited provides investment products and services. COMP201700651

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