NEW YORK CITY- A JV formed by affiliates of Madison Marquette and certain funds within the Perella Weinberg Partners’Asset-Based Value strategy announced Tuesday that it has purchased the Center Building, a 450,000-square-foot, multi-tenant office building in Long Island City, in Queens for $84.5 million.
The newly formed entity plans to build upon the asset’s existing strong tenancy and cash flow, and to add value to both the office and retail components, according to an announcement fro HFF which marketed the property on behalf of the seller, Hampshire Properties.
The JV indicated in its announcement that the two firms “expect to invest in strong cash flowing investments in a handful of selected key markets across the United States.” Several spokespeople for the JV did not return calls seeking additional comment. Affiliates of Madison Marquette will manage all properties acquired by the joint venture.
The Center Building sits at 33-00 Northern Boulevard, right above the 36th Street subway station, which affords the building direct access to both the M and R subway lines. The property is also close to the Queens Midtown tunnel, the 59th Street bridge and the 7 train. Originally built in 1915, the property has a 62-space underground parking garage and a ground-floor restaurant.
The Center Building is 88 percent leased to New York City Agencies including the Human Resources Administration, New York City Transit Authority, Department of Cultural Affairs, Office of Court Administration, and Taxi and Limousine Commission, according to the HFF announcement.
The HFF investment sales team representing the seller was led by senior managing directors Andrew Scandalios and Jose Cruz, and managing directors Jeffrey Julien and Kevin O’Hearn.
“The Center Building’s location in Long Island City is highly accessible from Midtown Manhattan, making it a popular destination for tenants that want access to the Manhattan market and want to be in a growing, vibrant area that is easily accessible by employees and residents,” says Scandalios in the release.
Julien elaborates on the building’s appeal. “33-00 Northern Boulevard is known as the Center Building because it is located at the geographic center of the five New York City boroughs,” he says. “We are seeing strong institutional investor demand for these fortress-location Long Island City assets, and this was a highly sought-after asset.”
For its part, Madison Marquette is happy to get into LIC. “Long Island City is a very attractive investment market,” says Ryan Colbert, director of investments, in the JV release. “The Center Building has an irreplaceable location and a blue-chip tenant base. The combination of having both stable cash flow and upside potential makes this a very unique investment.”