Morgan Stanley Real Estate announced today that its Prime Property Fund® has acquired 2 Park Avenue in Midtown Manhattan from a joint venture between L&L Holding Company, LLC and its institutional partner for $519 million. L&L Holding Company, LLC will maintain a minority position in the property and will continue as the leasing and managing agent for the property.
“The acquisition of 2 Park Avenue, with its institutional quality tenants, represents a unique opportunity to invest in the Manhattan office market, which is characterized by high barriers to entry, strong demand and limited new supply,” said Dave Hardman, Managing Director and Head of U.S. Real Estate Investing, Morgan Stanley. “With Midtown Manhattan’s vacancy at 4.4 percent, the lowest of any submarket in the United States, we believe we have acquired a high-quality, well-located asset in a market poised for material rental rate growth over the next several years.”
2 Park Avenue contains 1 million square feet and is currently 95 percent leased to multiple tenants. Originally built in 1928 and renovated in 1989 and 2006, 2 Park Avenue is an architecturally significant building from the Art Deco era designed by Ely Jacques Kahn. The building appeals to a variety of tenants given the varied floor plate size. Located on Park Avenue between 32nd and 33rd Streets, the building is a convenient 10-minute walk to Grand Central Station and Pennsylvania Station and has a subway entrance just outside the building. Amenities include the Artisanal Fromagerie & Bistro, a 43-car parking garage and two banks.
PRIME, a $6.3 billion diversified core real estate fund, is managed by Morgan Stanley Real Estate. PRIME’s assets include office, retail, multifamily, industrial, self storage and hotel properties and are located in major real estate markets throughout the United States. Morgan Stanley Real Estate is comprised of three major global businesses: Investing, Banking and Lending. Since 1991, Morgan Stanley has acquired $102.0 billion of real estate assets worldwide and currently manages $60.5 billion in real estate assets on behalf of its clients. In addition, Morgan Stanley Real Estate provides a complete range of market-leading investment banking services to its clients, including advice on strategy, mergers, acquisitions and restructurings, as well as underwriting public and private debt and equity financings. Morgan Stanley is also a global leader in real estate lending and, using its own capital, originated $35.5 billion in commercial mortgages in 2006.
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, investment management, wealth management and credit services. The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 600 offices in 30 countries. For further information about Morgan Stanley, please visit www.morganstanley.com.
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