The struggling office building sales market received a $500 million gift, not from Santa but from the world's largest reinsurance company.
Munich Re has quietly acquired joint venture partner Mutual of America at 320 Park Avenue, a 760,000-square-foot tower between East 50th and 51st Streets, The Post has learned. Ta.
Munich Re previously owned 25% of the fully leased property.
The deal reflects the strength of Park Avenue on the north side of 42nd Street, where most buildings are fully leased to prime tenants.
The tower is home to Mutual of America, which has been headquartered there since purchasing the building in 1992, as well as Raymond James and several other financial firms.
As an internal partnership transaction, the purchase will not be posted on the City Finance Department's ACRIS website. However, market sources estimate the price at between $500 million and $525 million, making the entire building worth about $700 million, or about $900 per square foot.
In 2021, Mutual of America welcomed Munich Re as a minority partner through Munich-based asset management firm MEAG. MEAG invested $40 million in renovations, including a new lobby, tenant amenity floor and renovation of nearly half of the building's floors.
Munich Re also owns 330 Madison Avenue, where it paid off a $500 million mortgage in cash, the newspaper reported in August.
“Think about it,” said one securities official. “Between that and now 320 Park, they put $1 billion into the city in less than six months.”
The deal marks one of the largest office purchases in the city this year, as values continue to fall in the wake of the pandemic.
For example, Morgan Stanley successfully sold 2 Park Avenue to Haddad Brands for $360 million. Morgan Stanley sold it for $519 million in 2007, The Real Deal reported last week.
Manhattan office purchases so far this year have actually been overshadowed by some flashy retail deals, most notably Gucci's parent company, Kering, in January from Jeff Sutton The company acquired just three floors at 715-717 Avenue for $963 million.
Mutual of America was represented by the JLL team of Frank Doyle, David Kleiner and David Giancola. Munich Re was advised by asset manager MEAG.
JLL Vice Chairman Doyle called 320 Park Avenue “a classic example of an outstanding Class A office property that is performing well in today's market.” We offer an excellent location, premier amenities and best-in-class ownership, making it a highly attractive property for top tenants. ”
