Foreign investors are also continuing to be a major player in Manhattan real estate. As the New York Post reported this morning, the Abu Dhabi Investment Council is negotiating to buy a 75% stake in the 1.3-million-sf Chrysler Building for $800 million. The assets would be purchased from TMW, the German arm of an Atlanta-based investment fund. Tishman Speyer would reportedly remain in charge of the building, with the Abu Dhabi fund acting as a silent partner. Queries to Tishman Speyer were unanswered by deadline.

Hugh Finnegan, an attorney in the real estate group at Sullivan & Worcester LLP, tells GlobeSt.com that there are a "plethora of possibilities" as to why TMW would be eager to cash out of its Chrysler stake. Some potential reasons include that "they are looking at other opportunities, they had hoped to get cash through a refinance but the market is against them, or the offer was too good to pass up."

He says that the Manhattan market is attractive to both foreign and domestic buyers. "The New York market has been relatively immune to the market correction going on pretty much throughout the rest of the country," he says. "When the market gets strong again, it will be manifested in New York first. Both foreign and local investors are comforted by the ongoing stability of New York real estate."

Finnegan says that he expects to see the trend of sovereign wealth funds looking to local trophy towers to continue. "They have cash, the exchange rate is in their favor and New York City remains an attractive market."

Instant Insights /

Foreign, Domestic Players Vie for Trophy Assets

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