Manhattan Retail Site Commands $525M

NEW YORK CITY-The Carlyle Group and Stanley Chera’s Crown Acquisitions have completed the acquisition of a controlling interest in the retail portion of 666 Fifth Ave. from the building’s owner, Kushner Cos., for $525 million. The 90,000 sf retail property is positioned on Fifth Avenue between 52nd and 53rd streets and offers 200 feet of uninterrupted retail frontage on Fifth Avenue.

Prior to closing, in a transaction arranged by Crown Acquisitions, Abercrombie & Fitch leased 20,000 sf of newly available space at 666 Fifth Ave., to join existing retailers the NBA Store and Hickey Freeman. “This is a landmark building in Manhattan’s prime retail shopping district,” says Robert Stuckey, head of Carlyle’s US Real Estate Team, in a prepared statement. “Locations with high national and international foot traffic such as Manhattan’s Gold Coast present unparalleled exposure and brand placement to their retail tenants.”

Carlton Advisory Services arranged the venture between Carlyle, Crown and Kushner as well as the lending syndicate, which included Barclays and SL Green. The joint venture was represented by counsel, Simpson Thacher and Bartlett LLP and Fried, Frank, Harris, Shriver & Jacobson LLP.

Carlyle’s investment in this property–which Kushner purchased for a record $1.8 billion in late 2006, early 2007–comes from Carlyle Realty Partners V, a $3 billion opportunistic real estate investment fund that invests in office, hotel, industrial, retail, residential and senior living sectors. Carlyle sources were unable to answer GlobeSt.com queries by deadline.

Carlyle has been busy this week. As GlobeSt.com recently reported, the Carlyle Group, Extell Development Co. and RREEF secured a $613 million construction loan for the development of two luxury residential buildings at Riverside South on Manhattan’s Upper West Side. Carlyle’s investment in the Riverside South development comes from Carlyle Realty Partners IV, a $950 million opportunistic real estate investment fund launched in 2004.