450 Park Avenue (Rick Kopstein)
Toronto-based Oxford Properties Group has an agreement to purchase 450 Park Ave. for $575 million. Somerset Partners and the Tabor Family Trust is the seller of the 33-story, 334,404 square-foot office building located in the Midtown East neighborhood, at Park Avenue and 57th Street. The deal is expected to close in a couple of months.
The property “was sought after by many investors from around the globe— Oxford was nimble and flexible and provided a number of quantitative and qualitative options,” said Douglas Harmon, senior managing director at Eastdil Secured, who assisted Somerset in the sale.
Oxford declined to discuss anything related to the agreement.
Dennis Hellman, a member of Rosenberg & Estis, and associate Jolie Meer, represent the seller.
John Sullivan, a partner at DLA Piper in Boston, represents the buyer.
Public records show that Somerset acquired 450 Park Ave. in 2007 for about $509 million, a year before the 2008 economic collapse. The sale price, per square foot, was then a record- breaking amount.
Profits were applied from the sale of another building, and Somerset only needed to borrow 30 percent of the purchase price of 450 Park Ave., principal Keith Rubenstein, told The New York Times. “It turned out to be one of the best investments we ever made.” Somerset is owned and managed by Rubenstein and Philip Welch.
Once the Park Avenue deal closes, it is expected to rank among the highest amounts paid for a Manhattan office building.
Somerset, as a private real estate investment firm, has more than 25 years of experience in the industry with a focus on commercial and residential properties across the United States.
The family trust of British millionaire Michael Tabor, who has made fortunes from bookmaking, horse breeding and horseracing, and real estate, has collaborated with Somerset on several other property ventures in New York, according to The Financial Times.
Oxford invests in and manages real estate assets for Ontario Municipal Employees Retirement System, one of Canada’s largest pension plans. Established in 1962, OMERS has about 435,000 active and retired members and 947 participating employers, according to its website.
Oxford has been on the scene since 1960 with its first development in Edmonton, Canada. It now has over $20 billion in assets across Canada, including 50 million square feet of office, retail, residential, industrial and commercial real estate.
In addition to Harmon, Eastdil Secured’s Adam Spies, senior managing director, and Kevin Donner, managing director.
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