Norges Bank Investment Management, the $1.8 trillion sovereign wealth fund of Norway announced Tuesday it had entered into an agreement to acquire a 95% stake in a New York City office tower for $542.6 million.
The property, 1177 Avenue of the Americas, is currently owned by a joint venture between the California State Teachers’ Retirement System and real estate developer Silverstein Properties. The sale is expected to close in the third quarter of the year.
A subsidiary of Beacon Capital Partners will acquire the remaining 5% stake and will take over management of the property from Silverstein Partners. Silverstein and CalSTRS purchased the building through their Metro Fund LLC joint venture in 2007 for more than $1 billion from Paramount Group, Inc.
The new transaction values the property at $571.1 million.
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Tenants of the building include the YMCA Retirement System, law firm Faegre Drinker, the Practising Law Institute, Nexxen, and ISS STOXX, an external service provider to NBIM and the parent company of CIO.
NBIM allocates 1.9% of its assets, or $36.339 billion, to real estate.
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Tags: CalSTRS, NBIM, Real Estate
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