Rockwood Capital’s Christmas want got here true: it offered its Midtown workplace tower close to Grand Central Terminal. However it could really feel like a stocking of coal in comparison with earlier offloading efforts.
Sovereign Companions sealed the deal on a $273 million acquisition of two Grand Central Tower on Thursday, the Business Observer reported. The deal for the 667,000-square-foot property breaks right down to $409 per sq. foot.
This yr, Rockwood put the property in the marketplace, in search of a sale worth of roughly $270 million. The final time the personal fairness investor tried to promote, again in February 2020 (shortly earlier than the Covid-19 pandemic hit), Rockwood had anticipated to promote the tower for close to $580 million, greater than double its more moderen aspiration.
Rockwood bought the workplace constructing in 2011 from Boston Properties, now BXP, for $401 million. Boston Properties purchased it for nearly $428 million in 2008 from Harry Macklowe, who developed it.
The Promote reported that Sovereign Companions was finalizing a deal for the workplace constructing in direction of the tip of October, but it surely didn’t shut till this week.
Eastdil Secured’s Gary Phillips and Will Silverman negotiated the transaction. Purchaser and vendor didn’t return requests for remark from the Observer.
Rockwood secured a $262.6 million refinancing of the 44-story tower in July, changing the earlier $260 million mortgage on the property made in 2018; each loans got here courtesy of MetLife, which is offering $177 million in acquisition financing to Sovereign.
Tenants embrace the Nuvo Group, Maersk, Cigna and numerous monetary, authorized {and professional} companies corporations. Rockwood additionally has its headquarters within the constructing.
Rockwood not too long ago introduced that it will combine its operations into Harrison Avenue Asset Administration; the 2 corporations are subsidiaries of Colliers Worldwide. Two months in the past, it listed the 230,000-square-foot workplace constructing at 1 Broadway within the Monetary District, in search of $180 million.
Cyrus and Darius Sakhai’s Sovereign Companions are buyers within the Midtown East market. Final yr, it purchased 780 Third Avenue from Nuveen for $178 million. Earlier, Sovereign Companions landed 100-104 FIfth Avenue from Clarion Companions for the heavily discounted price of $125 million.
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