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NEW YORK CITY-A newly formed joint venture of Colliers ABR and AEW Capital Management has picked up its first asset. The partnership has acquired the 156,000-sf 229 West. 28th St. For previous coverage, click here.

AEW acquired the property on behalf of AEW Partners V, LP, a real estate opportunity fund managed by AEW. “This purchase exemplifies our strategy of sourcing off-market deals through our extensive network of contacts,” said Anthony McElroy, managing director/acquisitions at CABR. “The existing rents in the building are below market rates.” No purchas price was revealed.

The 12-story, loft-style class B office building formerly housed mostly printing companies. The building is located across from the Fashion Institute of Technology and borders the Chelsea and Penn Station submarkets. McElroy says the firm plans to re-position and re-lease the building at market rents. A large block of space will be available for lease within the next 18 months.

In total, the joint venture plans to acquire assets in excess of $300 million in the New York metropolitan area. This program will concentrate on opportunities where investment returns can be generated by effectively managing leasing risk, development risk and market risk. They will focus on existing Class B office and retail properties, as well as development sites in strategic locations near major transportation hubs. It is the pair’s second joint venture endeavor. It was formed at the end of last month.

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