PREI Purchases Commercial Area of 31-Story NYC High-Rise
- Sep 09, 2011
September 9, 2011
By Nicholas Ziegler, News Editor
The New York City market, like the city itself, never sleeps. The latest sale was courtesy Prudential Real Estate Investors, who purchased the commercial portion of The Laurel, a Class A mixed-use building on the Upper East Side. The Laurel is the fund’s second New York acquisition this year following the recent acquisition of the 22-story Midtown office building at 28 West 44th St., known as the Club Row Building, in a joint venture with APF Properties.
“The high credit quality of the tenants and long term leases, combined with the strong location makes this a tremendous opportunity for our clients to gain a predictable stream of income and the potential to gain strong returns over time,” David Pahl, managing director for PREI, said.
The investment will likely be lucrative for PREI, as reports are bullish on the retail sector in New York. A Cushman & Wakefield report notes that availability continues to decrease “in every major market” and average ground-floor rents will continue to rise. A Jones Lang LaSalle report was similarly positive, asserting that, in the long term, New York’s performance will surpass the nation at large, due to solid growth in the financial infrastructure and the resulting salary increases.
The Laurel is among the most recently completed buildings in Manhattan, designed by award-winning architects Costas Kondylis & Partners. The 31-story, 314,000 square-foot building includes 58,750 square feet of commercial space, which is 100 percent leased to tenants that include Cornell University’s medical research and treatment facility, TD Bank and a Quik Park garage.