Menora Mivtachim has purchased an office block in the heart of Manhattan together with the America REIT fund SL Green, which is the largest office owner in Manhattan. The asset was bought for $445 million with Menora investing $450 million, representing 25% of the equity invested in the deal. SL Green invested a similar sum with the remainder invested by a Korean entity.
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The building, which is considered a Class A Trophy Asset is 33 stories high with a total space of 32,000 square meters and is located in one of the most central locations in Manhattan, on Park Avenue and 57 Street opposite the Four Seasons Hotel. Around 6% of the building is commercial space rented out to luxury car brand Aston Martin and United Bank with contracts running until 2029.
The building currently has 22 tenants, mostly from the finance sector, and is thus not dependent on a single tenant. The average floor space is 1,000 square meters, an ideal size for financial firms and hedge funds.
Over the past two months, there has been a significant increase in the rental transactions in the office sector in Manhattan, especially in the Midtown area, with a clear trend of tenants focusing on quality buildings with various amenities and high-level services, and located in central parts of town.
The deal was made to take advantage of the opportunity to purchase a quality asset with potential for betterment that is located in one of the most central and prestigious areas of Manhattan and to do so alongside a leading partner that has proven experience in the New York office sector. The deal was led on Menora's side by Uzi Levi, CEO of Menora Mivtachim Real Estate, and Shiri Kishon, head of real estate investments at the company.
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Uzi Levi, CEO of Menora Mivtachim Real Estate: "The deal took advantage of an opportunity to purchase a quality asset with potential for betterment located in one of the most central and prestigious locations in Manhattan. We are very pleased to have partnered with SL Green which is very knowledgeable in the local market and is a leader with proven expertise in the New York market and is partnering with us on equal terms.
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