PREI Partners with L&L Holding for NYC Office Shopping Spree
- Aug 14, 2008
Prudential Real Estate Investors established a joint venture with L&L Holding Co. L.L.C. for the acquisition of premier office properties in the greater New York City area. Acting on behalf of institutional investors, the team will plunk down as much as $500 million for the purchases, most of which will be made in Manhattan. As for timing, the joint venture, arranged by Cushman & Wakefield Sonnenblick Goldman, is planning to capitalize on the smaller price tags that have been spurred by the lending market crisis and the downturn in the economy. While the New York City office market has not gone unscathed in the current climate, it remains fairly robust. The average vacancy rate for Class A properties is a relatively low 4.5 percent, according to a second quarter report by real estate services firm Grubb & Ellis Co. Parsippany, N.J.-based PREI, a division of financial services concern Prudential Financial Inc., provides investment opportunities and investment management services in the U.S., Europe, Asia and Latin America. As of the close of the first quarter, the company managed $31.5 billion in net assets on behalf of over 400 clients. Headquartered in New York City, L&L is a private real estate company that focuses on investing in office buildings, primarily in Manhattan. The company also provides its partners with a range of real estate services, including acquisition, disposition, asset management leasing, construction and financing.