"This is prime office space in New York City," Frank Orioli, director of Principal Real Estate Investors, tells GlobeSt.com. "The location in the Plaza district performs well. It's where all the tenants want to be. We look for stable high-quality assets." Other key factors in the deal were that the site has good space market fundamentals and park views, company officials note. "We're very positive about New York."

Orioli adds that the firm secured the agreement before the property was formally marketed for sale by taking a "proactive approach with the building's current owners, Normandy Real Estate Partners and the Landis Group." He adds that the deal was completed in just a few weeks. In 2002, a joint venture of Normandy and Landis acquired the site for roughly $148 million.

"Our investment in 1370 Ave. of the Americas was consistent with our strategy to acquire high quality assets where we can add value through proactive management and leasing," says David Welsh, managing principal of Normandy. "Having completed our business plan, it was a logical time for us to sell the property." Orioli says PREI is not planning any renovations.

Built in 1971, the 336,000-sf, 35-story office tower is located at the southeast corner of West 56th St. It is 96% leased and has a tenant roster that includes AXA Financial, Absolut Vodka, Liberty Partners, Miss Universe and US Realty Partners. JP Morgan Chase & Co. occupies ground-floor retail space. PREI acquired the building on behalf of the Principal US Property Account.

Instant Insights /

GlobeSt.com UPDATE: PREI Looks for Stable Assets

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