Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has closed the $38 million sale of and arranged $18 million in acquisition financing for a fully leased retail property and parking garage totaling 35,262 square feet located at 325 Fifth Avenue in Midtown Manhattan.
HFF marketed the property on behalf of the seller. HUBB NYC Properties purchased the asset free and clear of existing financing. Additionally, working on behalf of the new owner, HFF placed the 10-year, fixed-rate loan with Allianz Real Estate of America. Loan proceeds were used to acquire the property.
Completed in 2005, 325 Fifth Avenue consists of two condominium units: a 5,972-square-foot, Class A, ground-floor retail condominium that is leased to Bonchon Chicken, I Love Souvenirs and Hanmi Bank and a 174-space, 29,290-square-foot, below-grade parking garage leased to GGMC Parking. Situated between 32nd and 33rd Streets in Midtown Manhattan’s Murray Hill submarket, the property is directly across the street from the Empire State Building, New York City’s most iconic tourist attraction, and steps from New York’s Herald Square. The mixed-use property is within walking distance of multiple subway stations accessing 15 subway lines, and Grand Central Terminal, Port Authority and Penn Station are nearby.
The HFF investment sales team was led by senior managing director Andrew Scandalios and managing director Rob Rizzi.
HFF’s debt placement team was led by senior managing director Michael Gigliotti and managing director Scott Aiese.
“HUBB NYC is very excited about this transaction and appreciative of the opportunity to work with the sellers and HFF,” said Jesse Terry, HUBB NYC Director of Acquisitions. “We can only hope to acquire more assets like this one.”
“We're thrilled to close the sale of this property, which is one of the largest Manhattan retail trades in 2017,” Rizzi said. “The transaction demonstrates that there is still a healthy appetite for retail investments, particularly those with strong locations and stable cash flow.”
“A number of lenders aggressively pursued this opportunity; however, Allianz Real Estate of America was ultimately selected due to its outstanding track record and strong long-term, fixed-rate quote,” added Aiese.
Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.