LOS ANGELES – June 2, 2016 – CBRE Global Investors’ U.S. Managed Accounts Group has acquired a 47 percent interest in 7 W 34th Street, a newly renovated Class A office and retail building in Manhattan, on behalf of Korea Post. The stake was acquired from Vornado Realty Trust, who retains a 53 percent partnership interest.
The 477,143 square foot, 12-floor property is located in the Midtown South submarket. Significant renovations were made in 2014-2015 to bring the building up to the standards of today’s high-tech tenants, including: improvements to the lobby, elevators, building systems, and renovated and repurposed tenant spaces. A new rooftop terrace is being completed, which will have views of the Empire State Building. The building features extraordinarily high ceilings that are conducive for today’s office users as the property was originally constructed as a department store and benefits from high-profile street frontage on both 34th and 35th streets.
One of Manhattan’s most exciting office districts and known as an incubator for growth, the submarket is the preferred location for tenants in technology, advertising, media, and information. The unique neighborhood is dominated by prewar, former department store and manufacturing buildings that provide the character these types of companies are seeking and offers a wide variety of amenities, access to hotels, and some of the city’s best restaurants and entertainment venues. In addition, the property will benefit from retail and tourism growth along West 34th Street.
“West 34th Street is currently undergoing a commercial reinvention that is drawing hundreds of thousands of people to this live, work, play neighborhood,” said Jeffrey Torto, Senior Managing Director, U.S. Managed Accounts Group. “The level of development
along W 34th Street is unprecedented in the history of New York, and 7 W 34th Street is at the center of this significant east-west corridor. In addition, the newly renovated 34th Street Macy’s, the Empire State Building, and Madison Square Garden draw millions of tourists each year to the area, driving retail sales. 7 W 34th Street is ideally located to benefit from both the growth in tourism and the increasing level of development occurring in the area.”
Darcy Stacom and Bill Shanahan, Vice Chairmen, CBRE, represented Vornado in the transaction.
This transaction is the third that CBRE Global Investors has executed for Korea Post in the United States and spotlights the continued growth in the firm’s cross-border separate accounts platform.
About CBRE Global Investors
CBRE Global Investors is a global real estate investment management firm with $89.7 billion in assets under management* as of March 31, 2016. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment firm for the benefit of its investors. CBRE Group, Inc. has more than 70,000 employees in more than 400 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com
*Assets under management (AUM) refers to the fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of investments in real estate; equity in funds and joint ventures; securities portfolios; operating companies and real estate-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.