Silverstein Properties and CalSTRS Purchase 1177 Sixth AveDec 20, 2007
SILVERSTEIN PROPERTIES and CalSTRS PURCHASE 1177 SIXTH AVENUE FROM PARAMOUNT GROUP
Midtown Acquisition Is Third Investment by Metro Fund LLC
New York, December 20, 2007 – Silverstein Properties and its joint venture partner, the California State Teachers’ Retirement System (CalSTRS), announced today that it has acquired 1177 Sixth Avenue in midtown Manhattan from Paramount Group, Inc. for more than $1 billion.
The purchase of 1177 Sixth Avenue, a 47-story, one-million-square foot office tower located between 45th and 46th Streets, marks the third investment of Metro Fund LLC, the joint venture between CalSTRS, a pension fund, and Silverstein Properties.
Last year Metro Fund bought 575 Lexington Avenue – a 35-story office tower currently undergoing lobby renovations – and 99 Church Street, which is being developed into a luxury hotel and condominium designed by Robert A.M. Stern to be completed in 2011.
“From Lexington Avenue to Downtown Manhattan and now the Rockefeller Center District, Metro Fund has allowed us to continue to expand our New York real estate portfolio,” said Larry A. Silverstein, President and CEO of Silverstein Properties. “We are thrilled to close out 2007 with the addition of this building.”
Eastdil Secured and Goldman, Sachs & Co. marketed the property on behalf of Paramount. CalSTRS is advised by CB Richard Ellis Investors, a wholly owned but independently operated subsidiary of CBRE.
Vic Bucchere, Managing Director and National Head of Acquisitions of CB Richard Ellis Investors, said: “As the third major New York deal by Metro Fund, the purchase of 1177 Sixth Avenue is a valuable investment in the short- and long-term.”
Tenants at 1177 Sixth Avenue include Pricewaterhouse Coopers LLC, and law firms Dickstein Shapiro Movin & Oshinksy and Kramer Levin Naftalis & Frankel. Construction on the granite building – also known as the Americas Tower – started in 1989 and was completed in 1992.
About Silverstein Properties
Silverstein Properties is a Manhattan-based real estate development and investment firm that has developed, owned and managed more than twenty million square feet of office, residential and retail space. In July 2001, Silverstein completed the largest real estate transaction in New York history by acquiring the 10 million sq. ft. World Trade Center, only to see it destroyed by terrorist attacks six weeks later on September 11, 2001.
Silverstein is committed to the redevelopment of the World Trade Center site. On May 23, 2006, Silverstein Properties opened 7 World Trade Center, a 52-story, 1.7 million square foot office tower, at 250 Greenwich Street, just north of the World Trade Center site. 7 WTC is now almost 75% leased to a diverse group of tenants. In September, 2006, designs were unveiled for three new office towers on the WTC site – 200, 175 and 150 Greenwich Street – that will be developed by Silverstein Properties. Construction on the three towers will begin in January 2008.
With a $156 billion investment portfolio, the California State Teachers’ Retirement System is the second-largest public pension fund in the United States. It provides retirement, disability and survivor benefits to California’s 776,000 public school educators from kindergarten through community college. For more information, visit http://www.calstrs.com/.
About CB Richard Ellis Investors
CB Richard Ellis Investors, LLC is a global real estate investment management firm with over $35 billion in assets under management*, sponsors investment programs across the risk/return spectrum for investors worldwide. As of September 30, 2007, the firm made $7.3 billion of acquisitions in North America, Europe and Asia, and completed $4.0 billion in dispositions.
CB Richard Ellis Investors is an independently operated affiliate of CB Richard Ellis Group, Inc. (NYSE:CBG), and harnesses the research, investment sourcing and other resources of the world’s premier, full-service real estate services company for the benefit of its investors. CB Richard Ellis has over 24,000 employees in more than 50 countries worldwide. For more information, visit http://www.cbreinvestors.com/.
*including assets under management by global affiliates that do not offer investment management services in the United States or to U.S. clients.
About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), an S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2006 revenue). With over 24,000 employees, the Company serves real estate owners, investors and occupiers through more than 300 offices worldwide (excluding affiliate and partner offices). CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. In 2007, CB Richard Ellis was named one of the 50 “best in class” companies by BusinessWeek, and one of the 100 fastest growing companies by Fortune. For more information, visit http://www.cbre.com/