Core Office Investment
Co-investment with leading NYC landlord
Key facts
- Location: New York City, Midtown
- Building size: 926,543 sf
- Investment volume: $318 million ($345 psf)
- 7 year leveraged cash-on-cash yield: 8.5%
- Financed with 10 year fixed rate on favorable conditions
- 90% leased at purchase
- Property was sold for $550 million
Investment Case:
- Building was owned by leading office REIT
- Off-market sourced: 75% stake (preferred equity)
- EII Realty Corp. represented well known European client and negotiated purchase price and preferred return, investment structure and terms of JV agreements
- 100% leased at exit
- Result was improved NOI by increasing occupancy, buying out tenants and replacing them with quality tenants at higher rents
