NEW YORK--(BUSINESS WIRE)--Prudential Real Estate Investors and SJP Properties announced today the sale of a 45 percent interest in Eleven Times Square, the partnership’s state-of-the-art, 1.1 million-square-foot office and retail tower in Midtown Manhattan, to Norges Bank Investment Management based on a gross value of $1.4 billion. PREI is the real estate investment and advisory business of Prudential Financial, Inc. (NYSE:PRU).
As part of the transaction, the partnership will continue to own and control the building, while SJP Properties, as the operating partner, will continue to manage, lease and operate the building. SJP will also maintain its headquarters at the tower. The minority sale to Norges Bank Investment Management followed a marketing process led by CBRE, which attracted significant interest from a global roster of international organizations and sovereign wealth funds. Other terms of the transaction were not disclosed.
“The strength of the tenant roster and the state-of-the art features at Eleven Times Square, combined with its central location in the heart of New York City, allowed us to capitalize on the strong investor demand for core office properties in New York,” said Kevin R. Smith, a PREI senior managing director and head of the Americas business. “This transaction gives us the opportunity to retain control of this trophy asset with our long-term partner SJP while also allowing PREI to redeploy capital into other core investments that provide steady returns for our investors.”
“This transaction is reflective of Eleven Times Square’s position as a premier destination for leading global and local companies,” commented Jeff Schotz, executive vice president for SJP Properties. “Given the success of our leasing program and robust demand for our remaining premium tower space, we believe that now is an appropriate time to recapitalize the building as we continue to look for opportunities to further expand our New York metropolitan area market presence.”
Completed in 2010 and strategically located in a transportation hub at the intersection of Eighth Avenue and 42nd Street, the LEED-Gold-certified Eleven Times Square, inclusive of signed leases and current activity, will be approximately 90 percent leased. The property is anchored by Microsoft Corp. and global law firm Proskauer, along with a diverse roster of tenants across the finance, technology, legal, and media industries.
“SJP Properties operates this magnificent building with a level of integrity, professionalism and responsiveness that is truly unmatched,” said Ron Sernau, chairman of the Real Estate Department at Proskauer.
Eleven Times Square features precedent-setting LEED Platinum-level indoor air quality and a highly efficient glass curtain wall, along with innovative concrete core construction that supports the building’s infrastructure and provides enhanced safety. The building’s concierge-level services include a high-tech, state-of-the-art elevator dispatch system that minimizes tenant wait and is integrated with the building's security system; an advanced visitor check-in system; a large, secured, fully-efficient loading dock; and a messenger/mail center and delivery area specifically designed to maximize ease of use by tenants. The building’s office space features floor-to-ceiling windows and column-free corner offices, as well as multiple private terraces.
Situated between Bryant Park and Hudson Yards, Eleven Times Square offers convenient access to the numerous signature restaurants, world-class hotels and entertainment and shopping venues. Additionally, the building’s location allows tenants and visitors to benefit from the presence of an on-site subway entrance connecting to 12 subway lines, the Port Authority bus terminal and commuter parking lot. Grand Central Terminal and Penn Station are just one subway stop away.
About SJP Properties
Founded in 1981, SJP Properties is a privately held, vertically integrated real estate company specializing in the development, management and operation of Class A commercial and luxury residential developments in the New York Metropolitan region. The expertise of the company’s core in-house team of professionals encompasses the entire development process, from site selection through development and property leasing and management. The company is also a recognized leader in the development of build-to-suit mixed-use developments on behalf of a long-list of leading corporations, including Prudential, Panasonic, BMW, Sanofi, Tiffany’s, and Bayer, amongst others.
For 30 years, SJP has sustained an unblemished track record of success, having completed every project on time and within budget, while generating returns exceeding expectations for its investors. The company’s leadership has established trusted, longstanding relationships with many of the industry’s leading investors and financial institutions, who have invested repeatedly alongside SJP throughout its history. For more information, please call 212-335-2200 or visit www.sjpproperties.com.
Prudential Real Estate Investors is the global real estate investment business of Prudential Financial, Inc. (NYSE: PRU). Investing in real estate on behalf of institutional clients since 1970, PREI today has more than 650 employees located in 19 cities around the world, and gross assets under management of $58.2 billion ($43.5 billion net) as of September 30, 2014. PREI offers to its global client base a broad range of real estate investment vehicles across the risk-return spectrum and geographies, including core, core plus, value-add, opportunistic, debt, securities, and specialized investment strategies. For more information, visit www.prei.com.
Prudential Financial, Inc. (NYSE:PRU), a financial services leader with more than $1 trillion of assets under management as of December 31, 2014, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit www.news.prudential.com.