SJP Properties and PGIM Real Estate Acquire 470 Park Avenue South in Midtown South

NEW YORK CITY  – SJP Properties and PGIM Real Estate today announced that a joint venture partnership of the companies has closed on its acquisition of 470 Park Avenue South for $245 million from Norges Bank Real Estate Management and TH Real Estate. SJP will serve as operating partner, responsible for managing and leasing the 301,178-square-foot, Class A office and retail building.

The joint venture plans to transform 470 Park Avenue South to meet the discerning needs of the modern workforce with a highly amenitized, boutique hotel-style lobby that includes an outdoor garden, collaborative workspace, a game room, and a café and bar. Additionally, two roof terraces on the 14th and 18th floors, totaling 7,670 square feet, are available for potential activation and enhancements, as well as the opportunity for a private tenant entrance with dedicated signage.

The building’s leasing campaign will kick-off with a full floor of pre-built space that will cater largely to tenants in the technology and creative sectors with immediate and flexible space requirements. The pre-built floor will feature a collaborative, open layout and pantry with multiple conference rooms and private break areas.

“The location of 470 Park Avenue South has become one of the most desirable neighborhoods in Manhattan for a diverse cross section of companies. We saw this as an opportunity to acquire a well-situated, Class A asset with full avenue frontage alongside our long-time partner, PGIM Real Estate, and apply our asset management, leasing and construction expertise to capitalize on the neighborhood’s strong fundamentals,” said Steven J. Pozycki, CEO of SJP Properties. “We look forward to maximizing the value of the property and creating an optimal work environment for existing and future tenants.”

Alfonso Munk, Americas chief investment officer for PGIM Real Estate, said, “In recent years, the Park Avenue South submarket has seen a large influx of tenants across a variety of industries – technology, healthcare, media, hospitality and more, making it a vibrant “live/work/play” destination. We are pleased to collaborate again with our long-term strategic partner, SJP, to unlock additional value at 470 Park on behalf of current and prospective tenants, while adding another well-located, Class A New York City property to our clients’ portfolio.”

The neighborhood’s mix of loft properties and historic buildings are filled with top-of-the-line lifestyle amenities: fitness options such as Equinox and SoulCycle; high-end retailers; upscale residential development; upscale bars and eateries like Upland, Simon and the Whale and The Clocktower; and boutique hotels like Mondrian Park Avenue, The Edition, The NoMad, Royalton Park Avenue  and the James NoMad. The neighborhood facilitates a seamless experience, allowing the modern workforce to travel from the gym to the office to happy hour and back home without sacrificing quality of life for convenience.

With immediate access to the 6 Train underneath the building and just a 10-minute walk from Grand Central Terminal, 470 Park Avenue provides easy access to the 4, 5, 6, 7 and S subway lines and the Metro-North Railroad. It is also a 10-minute walk to Penn Station, with access to the 1, 2, 3, A, C and E subway lines, Amtrak, PATH, LIRR, and NJ Transit railroads.

470 Park Avenue South occupies the full-block front along Park Avenue South between 31st and 32nd Streets. The property is currently 87 percent leased to a number of high-profile tenants, such as Priceline.com and Dstillery, Inc.

The transaction was led by Todd Goldberg, managing director and head of Capital Markets at PGIM Real Estate; Ian Christ, executive director at PGIM Real Estate; Enrique Alonso, executive vice president at SJP Properties; and Zachary Freeman, senior vice president at SJP Properties.

About SJP Properties

Headquartered in New York City, SJP Properties is a vertically integrated commercial and residential real estate developer, investor, asset manager, construction manager and property manager. The expertise of the company’s core in-house team of professionals encompasses the entire development process, from site selection through coordination of tenant move-in for large multi-phase projects, including numerous Class A build-to-suit developments and individual tenant build-outs. Well known for the creation of unparalleled lifestyle-focused developments, SJP is committed to meticulous design and engineering development plans that reflect a keen understanding of market demand. The company has developed over 25 million square feet of property.

Having sustained an unblemished track record of success, SJP has established relationships with many of the industry’s leading investors and financial institutions, providing unparalleled access to capital. For more information, call 212-335-2200 or visit www.sjpproperties.com.

About PGIM Real Estate

PGIM Real Estate is the real estate investment business of PGIM, Inc., the global investment management businesses of Prudential Financial, Inc. (NYSE: PRU). Redefining the real estate investing landscape since 1970, PGIM Real Estate has professionals in 18 cities in the Americas, Europe and Asia Pacific with deep local knowledge and expertise, and gross assets under management of $70.9 billion ($50.4 billion net) as of September 30, 2018.PGIM Real Estate’s tenured team offers to its global client base a broad range of real estate equity, debt, and securities investment strategies that span the risk/return spectrum. To learn more about us, visit www.pgimrealestate.com.