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450 Park Avenue has been sold to the Chera family’s Crown Acquisitions in partnership with Canadian Oxford Properties Group.
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In partnership with the Canadian investment firm Oxford Properties Group, Chera family owned Crown Acquisitions is finalizing its purchase of the office building 450 Park Avenue in Manhattan. The skyscraper is being sold for $545 million, with half of its value coming from the building’s retail base. That part of the building is estimated to be worth approximately $12 million a year in rents, at a price of $1, 200 per square foot; even though the current rent is only $1.2 million a year. Clearly the investors expect the rents for retail spaces in midtown Manhattan to rise considerably.
This according to The Real Deal.
The building’s 35, 000 square feet of retail space alone is valued by the buyers at $245 million, or $7, 000 per square foot making it 45% of the building’s total value. The rest of the building is comprised of 286, 000 square feet of office space that is currently rented at $1, 048 per square foot.
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Located at the corner of 57th Street, the 321, 000 square foot building was originally expected to be sold for as much as $575 million, but the current lower sale price is said to come with an assumption of debts held by the seller. The property’s neighbors include a luxury residential tower at 432 Park Ave.
The sale price is not much of a mark up from the $509 million reportedly paid for the skyscraper in 2007 by its current owners who include Keith Rubenstein‘s Somerset Partners.
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This marks the second time that Crown and Oxford have partnered in the purchase of a building in the last year. Last year, in association with other investors, they acquired 650 Madison Ave for $1.3 billion.
Crown Acquisitions Inc is a New York company which owns and operates commercial, urban real estate assets.
Stanley Chera is a New York real estate developer and founder of Crown Acquisitions. The 80 year old Syrian Sephardic Jew is the son of a successful retailer who founded Young World, which bought the buildings in which its stores were located as it expanded. In the 1980s, when Chera took over the family business, he began the acquisition of new York real estate and is known for developing or repositioning the retail portion of his buildings and then selling the property.
Based in Toronto and established in 1960, Oxford Properties is a global real estate owner, investor, developer and property manager whose portfolio includes office, retail, residential and hotels.
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