$ 1 Billion plus NY Office Tower sale

Hines Closes on Midtown Tower Sales

By Paul Bubny | New York

425 Lexington Ave. has been 100% occupied since first opening in 1987.

NEW YORK CITY-In two separate transactions totaling more than $1 billion, Hines US Core Office Fund has closed on the sales of 425 Lexington Ave. to J.P. Morgan Asset Management and 499 Park Ave. to American Realty Advisors. Hines did not disclose the exact sale price of each office tower; however, the 750,000-square-foot 425 Lexington has been rumored to have sold for $700 million, or about $933 per square foot.
“These trophy assets delivered exceptionally strong returns to our investors,” Sherri Schugart, senior managing director and president and CEO of Hines’ Core Fund, says in a release. Hines acquired both buildings in 2003.
Law firm Simpson, Thatcher & Bartlett has been the anchor tenant at 425 Lexington since the property opened in 1987, and renewed its 595,000-square-foot tenancy this past April. The property’s other major tenant, CIBC, occupies 115,000 square feet; Hines says the 31-story tower has been 100% occupied since it was new.