Prudential Real Estate Investors and SJP Properties announced today the
sale of a 45 percent interest in Eleven Times Square, the partnership’s
state-of-the-art, 1.1 million-square-foot office and retail tower in
Midtown Manhattan, to Norges Bank Investment Management based on a gross
value of $1.4 billion. PREI is the real estate investment and advisory
business of Prudential Financial, Inc. (NYSE:PRU).
As part of the transaction, the partnership will continue to own and
control the building, while SJP Properties, as the operating partner,
will continue to manage, lease and operate the building. SJP will also
maintain its headquarters at the tower. The minority sale to Norges Bank
Investment Management followed a marketing process led by CBRE, which
attracted significant interest from a global roster of international
organizations and sovereign wealth funds. Other terms of the transaction
were not disclosed.
“The strength of the tenant roster and the state-of-the art features at
Eleven Times Square, combined with its central location in the heart of
New York City, allowed us to capitalize on the strong investor demand
for core office properties in New York,” said Kevin R. Smith, a PREI
senior managing director and head of the Americas business. “This
transaction gives us the opportunity to retain control of this trophy
asset with our long-term partner SJP while also allowing PREI to
redeploy capital into other core investments that provide steady returns
for our investors.”
“This transaction is reflective of Eleven Times Square’s position as a
premier destination for leading global and local companies,” commented
Jeff Schotz, executive vice president for SJP Properties. “Given the
success of our leasing program and robust demand for our remaining
premium tower space, we believe that now is an appropriate time to
recapitalize the building as we continue to look for opportunities to
further expand our New York metropolitan area market presence.”
Completed in 2010 and strategically located in a transportation hub at
the intersection of Eighth Avenue and 42nd Street, the
LEED-Gold-certified Eleven Times Square, inclusive of signed leases and
current activity, will be approximately 90 percent leased. The property
is anchored by Microsoft Corp. and global law firm Proskauer, along with
a diverse roster of tenants across the finance, technology, legal, and
media industries.
“SJP Properties operates this magnificent building with a level of
integrity, professionalism and responsiveness that is truly unmatched,”
said Ron Sernau, chairman of the Real Estate Department at Proskauer.
Eleven Times Square features precedent-setting LEED Platinum-level
indoor air quality and a highly efficient glass curtain wall, along with
innovative concrete core construction that supports the building’s
infrastructure and provides enhanced safety. The building’s
concierge-level services include a high-tech, state-of-the-art elevator
dispatch system that minimizes tenant wait and is integrated with the
building's security system; an advanced visitor check-in system; a
large, secured, fully-efficient loading dock; and a messenger/mail
center and delivery area specifically designed to maximize ease of use
by tenants. The building’s office space features floor-to-ceiling
windows and column-free corner offices, as well as multiple private
terraces.
Situated between Bryant Park and Hudson Yards, Eleven Times Square
offers convenient access to the numerous signature restaurants,
world-class hotels and entertainment and shopping venues. Additionally,
the building’s location allows tenants and visitors to benefit from the
presence of an on-site subway entrance connecting to 12 subway lines,
the Port Authority bus terminal and commuter parking lot. Grand Central
Terminal and Penn Station are just one subway stop away.
About SJP Properties
Founded in 1981, SJP Properties is a privately held, vertically
integrated real estate company specializing in the development,
management and operation of Class A commercial and luxury residential
developments in the New York Metropolitan region. The expertise of the
company’s core in-house team of professionals encompasses the entire
development process, from site selection through development and
property leasing and management. The company is also a recognized leader
in the development of build-to-suit mixed-use developments on behalf of
a long-list of leading corporations, including Prudential, Panasonic,
BMW, Sanofi, Tiffany’s, and Bayer, amongst others.
For 30 years, SJP has sustained an unblemished track record of success,
having completed every project on time and within budget, while
generating returns exceeding expectations for its investors. The
company’s leadership has established trusted, longstanding relationships
with many of the industry’s leading investors and financial
institutions, who have invested repeatedly alongside SJP throughout its
history. For more information, please call 212-335-2200 or visit www.sjpproperties.com.
About PREI
Prudential Real Estate Investors is the global real estate investment
business of Prudential Financial, Inc. (NYSE: PRU). Investing in real
estate on behalf of institutional clients since 1970, PREI today has
more than 650 employees located in 19 cities around the world, and gross
assets under management of $58.2 billion ($43.5 billion net) as of
September 30, 2014. PREI offers to its global client base a broad range
of real estate investment vehicles across the risk-return spectrum and
geographies, including core, core plus, value-add, opportunistic, debt,
securities, and specialized investment strategies. For more information,
visit www.prei.com.
Prudential Financial, Inc. (NYSE:PRU), a financial services leader with
more than $1 trillion of assets under management as of December 31,
2014, has operations in the United States, Asia, Europe, and Latin
America. Prudential’s diverse and talented employees are committed to
helping individual and institutional customers grow and protect their
wealth through a variety of products and services, including life
insurance, annuities, retirement-related services, mutual funds and
investment management. In the U.S., Prudential’s iconic Rock symbol has
stood for strength, stability, expertise and innovation for more than a
century. For more information, please visit www.news.prudential.com.
Copyright Business Wire 2015