Jamestown Buys 49 Percent Stakes in NYC Madison Avenue Towersby
Jamestown LP, a real estate company whose holdings include Manhattan’s Chelsea Market, bought 49 percent stakes in two Madison Avenue office buildings, demonstrating an appetite for the market at a time when deals may be slowing.
The properties involved are 200 Madison Ave., a 26-story, 750,000-square-foot (70,000-square-meter) building whose tenants include apparel maker PVH Corp., and 63 Madison Ave., a 15-story, 870,000-square-foot building where New York Life Insurance Co. and CBS Corp. lease space, owners George Comfort & Sons and Loeb Partners Realty LLC said in a statement Monday.
Terms weren’t disclosed. The deals value the buildings at about $1.15 billion combined, or about $710 a square foot, the Wall Street Journal reported.
Jamestown was attracted by the two buildings’ full occupancy, “a clear indication that we are joining with a proven operator with a demonstrated track record in New York City,” Michael Phillips, the Atlanta-based company’s president, said in the statement.
Sales of commercial real estate in New York, which reached a record of $74.5 billion in 2015, may be “significantly lower” this year, with values falling “modestly,” Robert Knakal, Cushman & Wakefield Inc.’s chairman of New York investment, said at a briefing last month. The market is slowing down after “an unprecedented run of activity” from 2013 to the latter part of last year, as global interest in the stability of Manhattan properties helped fuel an increase in values.
A team of brokers led by Doug Harmon and Adam Spies of Eastdil Secured LLC were the financial advisers for the transactions, the partners said in the statement.