Pacolet Milliken and Partners Close on Sale of New York Office Building
May 18, 2015
Bank of China purchases 7 Bryant Park
SPARTANBURG, SC – Hines Interests, J.P. Morgan Asset Management and Pacolet Milliken Enterprises, Inc. announced today the close of the sale of the leasehold interest in their 28-story, 470,000-square-foot building in New York City, 7 Bryant Park, to the Bank of China. The financials of the deal were not disclosed. Pacolet Milliken will retain the land lease.
Hines Interests served as general partner, while Pacolet Milliken served co-sponsor of the general partner, in developing 7 Bryant Park. J.P. Morgan Asset Management, on behalf of institutional clients, provided all equity financing for the venture, while CBRE advised on sales and marketing.
Hines has assumed on-site property management responsibilities and CBRE has been selected as the exclusive leasing agent for the property. Floors 15-27, and the first-floor retail space fronting W. 40th St., are currently available for lease. The building achieved substantial completion at the end of April and is ready for tenant interior build outs.
“Our company and its ownership families are proud to be a part of this extraordinary project with partners Hines and J.P. Morgan Asset Management,” said Pacolet Milliken President Richard C. Webel.
New York Mayor Michael Bloomberg, at the groundbreaking in February 2013, called 7 Bryant Park “an iconic tower that will stand the test of time.” Henry N. Cobb and Yvonne Szeto, managing partners of the renowned Pei Cobb Freed architecture firm, said that they believed the building was a gesture of respect to the extraordinary results of the public/private partnerships in Bryant Park.
Hines Senior Managing Director Tommy Craig said, “We are very proud of the project and know it will be not only a great new home for future tenants, but a great investment for the new owner. We are pleased to stay involved with the property and look forward to working with CBRE to fill the remaining prime office space with top-quality, discerning tenants.”
About 7 Bryant Park
From the 1950’s until the late 1990’s, the 190,000 square foot building served as worldwide headquarters for the Milliken & Company’s marketing division. In 2007, the property was transferred to Pacolet Milliken which demolished the building, bought 75,000 square feet of air rights from a neighboring site and engaged Pei Cobb Freed & Partners to design a 470,000 square foot tower that would become 7 Bryant Park. In 2011, the company entered into a long-term ground lease and a General Partnership agreement with Hines Interests, one of the world’s most prominent real estate development firms. In 2012, the partnership received all equity financing from institutional clients advised by J.P. Morgan Asset Management.
Standing on the corner of Bryant Park opposite of the Bank of America tower, 7 Bryant Park is the last major new building that will be erected around the park, which has become one of the most celebrated urban spaces in the country. The 28-story, 470,000-square-foot steel and glass tower was designed by renowned architects Henry N. Cobb and Yvonne Szeto of Pei Cobb Freed & Partners. The orientation of the steel and glass tower will capitalize on direct views over the park and past the historic New York Public Library. The building’s entrance façade will be punctuated by a concave sculptural detail which cuts into the building in an hourglass shape, distinguishing the design and creating unique feature windows on every tenant floor. A floating stainless steel disc, measuring 46 feet in diameter, will be suspended over the corner entrance at 40th Street, serving as both a canopy and an architectural gesture facing the park, creating a memorable welcome point for tenants and their visitors. The building is LEED® Gold Pre-certified, and will incorporate the infrastructure and technology tenants require for their businesses to excel in the 21st century.
About Pacolet Milliken Enterprises, Inc.
Pacolet Milliken Enterprises, Inc. is a private, family-owned investment company with a history that dates back, through Milliken & Company, to the 1860s. In addition to urban office properties, multifamily, retail and medical facilities development, Pacolet Milliken has divisions that operate regulated and merchant utility businesses and income real estate in the southeast U.S. For more information, www.pacoletmilliken.com.
About Hines
Hines is a privately owned global real estate investment firm founded in 1957 with locations in 185 cities in 19 countries. Hines has $84.9 billion of assets under management, including $42.7 billion for which Hines provides fiduciary investment management services, and $42.2 billion for which Hines provides third-party property-level services. In 2014, Hines completed over $8 billion in transactions on behalf of its investment management clients. The firm has 104 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired more than 1,000 properties, totaling over 339 million square feet. The firm’s current property and asset management portfolio includes 511 properties, representing over 176 million square feet. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most-respected real estate organizations in the world. Visit www.hines.com for more information.
About J.P. Morgan Asset Management – Global Real Assets
J.P. Morgan Asset Management – Global Real Assets has more than $82 billion in assets under management and more than 400 professionals in the U.S., Europe and Asia Pacific, as of December 31, 2014. With a 45-year history of successful investing, J.P. Morgan Asset Management – Global Real Assets’ broad capabilities provide many of the world’s most sophisticated investors with a global platform of real estate, infrastructure and transportation strategies driven by local investment talent with disciplined investment processes consistently implemented across asset types and regions. The Global Real Assets team is part of J.P. Morgan Asset Management’s Alternatives Investments business, which collectively manages over $120 billion in client assets across real assets, hedge funds, credit and private equity. For more information: www.jpmorgan.com/institutional/global_real_assets
