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NEW YORK CITY-In a move Brookfield Properties Corp.’ president calls strategic, the property owner, developer and manager is selling a 49% interest in 245 Park Ave. to New York State Teachers’ Retirement System. The total sale price of the transaction will be approximately $438 million, comprised of $195 million in cash and the assumption of $243 million of property-level debt. Brookfield was advised by ING Clarion based on a property valuation of $894 million. Adjacent to Grand Central, 245 Park, built in 1965, is a 45-floor office tower located on a full square Midtown block. The property was acquired by Brookfield in November of 1996 along with the Olympia + York US portfolio recapitalization/purchase.

“This sale of a half interest in 245 Park Ave. is a continuation of our strategy to create value for shareholders by proactively managing our assets to enhance value, and then establishing partnerships with high-quality institutional partners who can participate in the cash flow along with us,” notes Ric Clark, Brookfield’s president and CEO.

According to a Brookfield Properties spokesperson, the sale to NYSTRS took approximately six months. “We consider 245 Park to be an amature property, as it’s fully leased and financed.There’s a strong appetite now among institutional investors for just this type of investment,” the spokesperson tells GlobeSt.com, noting that other parties were interested in the property.

NYSTRS was advised on the transaction by ING Clarion. After closing later this month, Brookfield will retain the management and leasing of the property. In 2001, 245 Park received the BOMA/NY award for “Renovated Building of the Year” Staring in 1997, Brookfield redesigned the major entrances and interior features of the building, upgraded building systems, and signed major leases including JP Morgan Chase, Rabobank and Major League Baseball.

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