Principal Real Estate Investors Acquires New York City Office Building
Dec. 13, 2006 (Des Moines, Iowa) — Principal Real Estate Investors, the fourth largest manager of real estate assets in the United States, has acquired a majority interest in 1412 Broadway on behalf of an institutional client. The acquisition was done in a joint venture with an entity of Murray Hill Properties LLC, a prominent New York City real estate company. The newly formed venture will perform necessary upgrades to convert the property into a class A New York office building.
The 400,000 square foot, Beaux Arts building enjoys an ideal location on the corner of Broadway and 39th Street, just South of Times Square, and has excellent access to public transportation. The property is just one block West and one block South of Bryant Park, which has become the center for various New York City events such as Fashion Week and many concerts. The building is 95% leased to over 50 tenants, including anchor tenants Escada USA, Inc., Hallmark and One Step Up, Ltd.
The midtown Manhattan office market is one of the most coveted in the U.S.," said Jim Halliwell, managing director of acquisition and dispositions for Principal Real Estate Investors. "We are an active participant in this market and are very excited to partner with one of New York's most respected real estate companies to upgrade this property, increasing its long-term revenue potential."
A Murray Hill Properties LLC entity purchased 1412 Broadway two years ago in partnership with the Adjmi Family and Bobby Cayre, two prominent names associated with New York's fashion and real estate industries. In the two years since the purchase, Murray Hill Properties LLC and its partners have installed a new steel/glass façade designed by Moed de Armas & Shannon Architects, new store fronts and showroom windows, a glass canopy and entryway and have invested in various other upgrades throughout the building.
"Working with Principal Real Estate Investors, we intend to take the building to the next level of renovation and upgraded tenancy," said Norman Sturner, a principal with Murray Hill Properties. Current plans call for a newly renovated lobby, elevators, windows and a building-wide upgrade of mechanical systems. "This property's layout and amenities present the ideal opportunity for the city's top tier showrooms and can accommodate a full-floor tenant seeking anywhere from 14,000 square feet on a single floor to 42,000 square feet on multiple floors," said Sturner, adding that the building is also "well suited to executive tenants, including financial, legal, advertising and publishing firms."
About Murray Hill Properties LLC
Murray Hill Properties LLC, a private real estate firm headquartered in New York, New York, has bought and sold over $7 billion worth of commercial real estate over the past 35 years. MHP currently manages over 5 million square feet of first-class office space, distinguishing itself among its peers in North America. On a global scale, MHP provides its clients with access to investment opportunities in over 200 major global markets.
About Principal Real Estate Investors
Principal Real Estate Investors is the fourth largest institutional real estate manager in the United States based on tax-exempt assets under management1 and manages or subadvises $36.2 billion in commercial real estate assets. The firm's real estate capabilities include both public and private equity and debt investment alternatives. Principal Real Estate Investors is the dedicated real estate group of Principal Global Investors.
About Principal Global Investors
Principal Global Investors is a diversified asset management organization and a wholly-owned subsidiary of Principal Financial Group®, with expertise in equities, fixed income and real estate investments, as well as specialized overlay and advisory services. Principal Global Investors manages $176.5 billion in assets primarily for retirement plans and other institutional clients.2
About the Principal Financial Group
The Principal Financial Group® (The Principal®)3 is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance and banking through its diverse family of financial services companies. A member of the Fortune 500, the Principal Financial Group has $215.0 billion in assets under management4 and serves clients worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.
1) As of June 30, 2006. Pensions & Investments magazine annual survey of real estate managers, Oct. 16, 2006.
2) As of Sept. 30, 2006. Principal Global Investors is the asset management arm of the Principal Financial Group® (The Principal®), and includes the global asset management operations of the following members of The Principal Financial Group: Principal Global Investors, LLC, its U.S. and foreign advisory affiliates, and the asset management operations of Principal International, Inc. and its member companies.
3) "The Principal Financial Group" and "The Principal" are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.
4) As of Sept. 30, 2006.
