Norges Bank JV to Pay $571M for Manhattan Tower

Norges Bank Investment Management said on Tuesday that it is teaming up with Beacon Capital Partners to acquire a Class A office building in Manhattan’s Plaza District.

Norges will pay $542.6 million for a 95 percent stake in 1177 Avenue of the Americas. Beacon will own the remaining 5 percent stake at the Midtown high-rise and serve as asset manager. The deal values the property at $571.1 million. Closing is expected by the third quarter. The deal was originally reported earlier today by Reuters.

The joint venture is buying the asset from the California State Teachers’ Retirement System and Silverstein Properties, which purchased the 47-story building in 2007 from Paramount Group for approximately $1 billion, or $1,000 per square foot, according to Yardi Research Data.

Originally built in 1988, the property has floorplates ranging from 9,900 to 33,900 square feet. The current owners completed a renovation in 2012. Four public transit stations are located nearby. The tenant roster includes Kremer Levin, Gates Capital Management, VakifiBank and more, Yardi Research Data shows.

Last summer, Silverstein signed two new tenants to the trophy tower, including Faegre Drinker Biddle & Reath LLP and the Trustees of Columbia University. In December, Norges made another large office portfolio investment totaling $977 million. The portfolio spans 3.7 million square feet across eight properties in Boston, San Francisco and Washington, D.C.