The two New York City-based groups did not release details of the agreement, which follows the acquisition of the asset in January by L&L Acquisitions, headed by Robert Lapidus and David Levinson. The group bought the property from the Chicago-based Transwestern Investment Co. in a deal arranged by Eastdil. The sale price was not disclosed, but sources with knowledge of the transaction say Zurich is in at approximately $138 million. Sonnenblick Goldman arranged the deal.
"This is a good example of the kind of investment our company is interested in pursuing," says Christian Halabi, Zurich Global's managing director. "Its stability and location, combined with leasing demand in the New York metropolitan market makes this the type of transaction that fits our real estate investment strategy."
Park 80 West consists of the eight-story, 224,000-sf Plaza I building and the 11-story, 264,000-sf Plaza II, with the two connected by a service-lined concourse. Major tenants include New York Life, the Federal Aviation Administration, personnel services firm Adecco and the main New Jersey office of CB Richard Ellis. The latter firm picked up the leasing assignment for the property not long after the acquisition.
In June, six months after closing on its acquisition, L&L announced a makeover for the complex, which is under way. The modernization includes upgraded mechanical systems, lobbies and other common areas, and new amenities.
The last upgrade to Park 80 West came in 1997 when Brandywine Realty Trust owned it. Brandywine sold it to Transwestern in early 2002 for a reported $75 million, or about $153 per sf. It's also part of a larger complex that includes the Park 80 East office building and a Marriott Hotel, both of which are under separate ownership.
"We are interested in making investments in a wide range of vehicles across all property types," Halabi says. "That includes net leased opportunities, joint ventures, partnerships and private REITs that are focused on core and value-added strategies."
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