CB Richard Ellis officials tell GlobeSt.com that Kensico Properties of New York City set a new record for commercial office investment, paying a record $1,083 per sf for 55 Railroad Ave. The private investment firm acquired the 131,630-sf office building from Willrich Holdings, LLC, an affiliate of Willet Cos. of Rye, NY, in a transaction valued at $142.5 million.

The deal gives Kensico Properties another trophy office building in Greenwich. The firm acquired the Pickwick Plaza office complex this past January.

The 55 Railroad Ave. building has significantly increased in value in just a few short years. In December 2004 Willrich Holdings acquired the property from National Office Partners Limited Partnership for $97.75 million or $743 per sf.

Jeffrey R. Dunne, vice chairman; Steven P. Bardsley; and Rikki B. Lawrence of CB Richard Ellis' New York Tri-State Region Institutional Group represented the seller and procured the buyer in the transaction.

CBRE officials say that the lofty price for 55 Railroad Ave. "is a testament to both the quality and location of the property, the long-term, stable income stream derived from a stellar rent roll, and investors' insatiable appetite for office property in the supply-constrained Greenwich market."

The building, located across from the Greenwich Metro North Station, is leased to several financial service firms that have long-term lease commitments.

"The availability of a trophy office asset like 55 Railroad is highly unusual. Kensico Properties recognized the long-term upside offered by its incredibly site constrained 'main and main' location and the tenants' below-market leases. Kensico Properties should experience great, long-term appreciation with this asset," says Dunne.

Willett Cos. is a private real estate company owned and managed by Frank Kenny, CEO, and Bruce Beswick, CFO. Willett owns several other properties in the Greenwich CBD including the Unilever Building. Kenny notes "the sale represented an opportunity for Willett to recognize a significant gain for its investors during its ownership tenure of little over two years."