{"id":1004232834,"date":"2018-05-31T03:02:47","date_gmt":"2018-05-31T11:02:47","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004232834"},"modified":"2022-12-07T11:29:30","modified_gmt":"2022-12-07T19:29:30","slug":"columbia-property-trust-sells-manhattan-office-asset-for-333m","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/columbia-property-trust-sells-manhattan-office-asset-for-333m\/","title":{"rendered":"Columbia Property Sells Manhattan Office Asset for $333M"},"content":{"rendered":"<p><em>By Gail Kalinoski<\/em><\/p>\n<div id=\"attachment_1004232848\" style=\"width: 310px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/05\/222_E41st_side-view.jpeg\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" aria-describedby=\"caption-attachment-1004232848\" data-attachment-id=\"1004232848\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/columbia-property-trust-sells-manhattan-office-asset-for-333m\/222_e41st_side-view\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/05\/222_E41st_side-view.jpeg\" data-orig-size=\"800,620\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"222_E41st_side-view\" data-image-description=\"&lt;p&gt;222 E. 41st St. f&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;222 E. 41st St. &lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/05\/222_E41st_side-view.jpeg?w=800\" loading=\"lazy\" class=\"wp-image-1004232848 size-medium\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/05\/222_E41st_side-view.jpeg\" alt=\"222 E. 41st St. f\" width=\"300\" height=\"233\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/05\/222_E41st_side-view.jpeg 800w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/05\/222_E41st_side-view.jpeg?resize=300,233 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/05\/222_E41st_side-view.jpeg?resize=768,595 768w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><p id=\"caption-attachment-1004232848\" class=\"wp-caption-text\">222 E. 41st St.<\/p><\/div>\n<p>A 25-story Midtown Manhattan office tower fully leased by NYU Langone Medical Center has changed hands, with Columbia Property Trust selling the 390,000-square-foot building to Commerz Real for $332.5 million.<\/p>\n<p>Commerz Real, a fully owned subsidiary and real estate investment manager of Germany-based Commerzbank AG, purchased the building at 222 E. 41<sup>st<\/sup> St. for its hausinvest open-ended real estate fund. Located three blocks from Grand Central Terminal, the tower was built in 2001 by Tishman Speyer. Columbia Property Trust acquired the building in 2007 for $319.8 million, according to Yardi Matrix data.<\/p>\n<p>When law firm Jones Day, the building\u2019s sole tenant, announced it was leaving in 2016, Columbia launched a proactive and wide-ranging marketing campaign. In May 2016, NYU Langone Medical Center <a href=\"https:\/\/www.commercialsearch.com\/news\/nyu-langone-medical-center-to-occupy-entire-manhattan-office-tower\/\">signed a 30-year, triple net lease<\/a> for the property, including all 25 floors, lobby, common areas and parking garage. Over the past two years,&nbsp; NYU Langone has been converting the office building into a multispecialty ambulatory care facility that began accepting patients in April. The creative transaction between Columbia and NYU Langone, arranged by CBRE for the landlord and by Cushman &amp; Wakefield for the tenant, resulted in Columbia receiving a 2017 CPE Distinguished Achievement Award for <a href=\"https:\/\/www.commercialsearch.com\/news\/cpe-distinguished-achievement-award-winners\/\">Best Lease in 2016.<\/a><\/p>\n<p><em>\u201cWe were very pleased to secure an esteemed tenant on a long-term lease, which significantly increased the value of the property. Proceeds will further strengthen our balance sheet in the near term and will eventually be recycled into higher growth investment opportunities<\/em>,\u201d Nelson Mills, Columbia president &amp; CEO, said in a prepared statement.<\/p>\n<p>CBRE\u2019s Capital Markets team, including Darcy Stacom and Bill Shanahan, represented Columbia in the marketing effort and transaction.<\/p>\n<h2>Long-term commitment<\/h2>\n<p>Commerz Real cited the triple net lease with a strong tenant like NYU Langone as a key factor, along with the Midtown location, in its decision to acquire the property. The firm noted world-famous skyscrapers like the Chrysler Building and the MetLife Building are in the same submarket and pointed to new development projects, such as One Vanderbilt, the 58-story, 1.7 million-square-foot trophy office tower being constructed adjacent to Grand Central Terminal.<\/p>\n<p><em>\u201cWe plan to retain this premium property in the long term, if only for the outstanding location and excellent lease agreement. Thus our investors can best profit from rising rental income and future value appreciation,\u201d<\/em> Henning Koch, Global Head of Transactions at Commerz Real, said in a prepared statement.<\/p>\n<h2><strong>Columbia\u2019s Manhattan Moves<\/strong><\/h2>\n<p>The deal comes several months after Columbia expanded its New York City portfolio with the <a href=\"https:\/\/www.commercialsearch.com\/news\/columbia-expands-nyc-portfolio-with-514m-office-buy\/\">$514 million purchase in October 2017<\/a> of two adjoining fully leased Class A office buildings located at 245-249 W. 17<sup>th<\/sup> St. and 218 W. 18<sup>th<\/sup> St. in the Chelsea submarket. New York REIT was the seller of the buildings, which serve as the New York City headquarters for Twitter and Red Bull, along with several other tenants. Also in 2017, Columbia acquired 149 Madison Ave., a 12-story 127,000-square-foot Class B office building in the Midtown South submarket, for $87.7 million.<\/p>\n<p>Columbia\u2019s portfolio, concentrated in New York, San Francisco and Washington, D.C., includes 19 properties totaling approximately 9 million square feet. Other Manhattan assets include 114 Fifth Ave., and 315 Park Ave. S. The REIT also owns 95 Columbus in Jersey City, N.J.<\/p>\n<p><em>Image courtesy of Columbia Property Trust<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>NYU Langone Medical Center has a 30-year triple net lease for the 390,000-square-foot building, which was recently converted for use as a multispecialty ambulatory care facility.<\/p>\n","protected":false},"author":1068,"featured_media":1004232848,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21743,21808,21783,1600,21742,10,21747],"tags":[32789,33221,40522,32799,40524,33224],"class_list":["post-1004232834","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deals","category-featured","category-investment","category-new-york","category-latest","category-northeast","category-office","tag-cbre","tag-columbia-property-trust-inc","tag-commerz-real-ag","tag-cushman-wakefield","tag-nyu-langone-medical-center","tag-tishman-speyer"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Columbia Property Sells Manhattan Office Asset for $333M - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/columbia-property-trust-sells-manhattan-office-asset-for-333m\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Columbia Property Sells Manhattan Office Asset for $333M\" \/>\n<meta property=\"og:description\" content=\"NYU Langone Medical Center has a 30-year triple net lease for the 390,000-square-foot building, which was recently converted for use as a multispecialty ambulatory care facility.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/columbia-property-trust-sells-manhattan-office-asset-for-333m\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2018-05-31T11:02:47+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-07T19:29:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/05\/222_E41st_side-view.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gail Kalinoski\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/columbia-property-trust-sells-manhattan-office-asset-for-333m\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/columbia-property-trust-sells-manhattan-office-asset-for-333m\\\/\"},\"author\":{\"name\":\"Gail Kalinoski\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/fc5b5df1393e5023d2417bd48c2fda57\"},\"headline\":\"Columbia Property Sells Manhattan Office Asset for $333M\",\"datePublished\":\"2018-05-31T11:02:47+00:00\",\"dateModified\":\"2022-12-07T19:29:30+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/columbia-property-trust-sells-manhattan-office-asset-for-333m\\\/\"},\"wordCount\":549,\"image\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/columbia-property-trust-sells-manhattan-office-asset-for-333m\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2018\\\/05\\\/222_E41st_side-view.jpeg\",\"keywords\":[\"CBRE\",\"Columbia Property Trust Inc.\",\"Commerz Real AG\",\"Cushman &amp; 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