Cross Ocean Partners continues to find attraction in the New York Metro area. The Dallas-based firm is teaming up with Lincoln Property Company to acquire an office building in Brooklyn, 470 Vanderbilt Avenue; this marks the first joint venture for the two.
The 650,000 square foot building is 100 percent leased and houses local government agencies, the New York City Housing Authority and New York City Human Resources Administration. The property offers floor plates ranging from 18,000 square feet to 100,000 square feet and 14.5-inch ceiling heights. Also, the 10-story building is within walking distance of the Atlantic Terminal and the office is accessible from three streets.
Most importantly, Terence Kim, managing director of U.S. Credit for Cross Ocean, noted that 470 Vanderbilt produces "strong cash flow."
"This property is a case-study," adding that the asset is "downside protected [and an] opportunistic investment in today’s office market and we’re excited to build on our momentum in this sector."
This will mark just the fourth office investment in the country for Cross Ocean since it was founded in 2015. However, in the past year alone, the company has made six investments in the New York Metro area. Cross has roughly $10 billion worth of assets under management.
The sales price of 470 Vanderbilt was unclear. However, RXR Realty in 2014 bought the asset for $195 million from Starwood Capital Group and GFI Development Company.
The acquisition for Lincoln, will expand its New York metro portfolio, where it operates in all five boroughs, plus Jersey City and Hoboken.
“470 Vanderbilt represents an ideal blend of credit cash flow and asymmetric upside,” Jared Toothman, market leader for Lincoln’s New York metro segment, said in a statement.
Overall, the environment for office looks strong in Gotham. Not only did leasing surge by 10.7 percent to about 3.01 million square feet in July, but Manhattan is on pace to have its best year for leasing in six years, a report from Colliers shows.
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