AFIAA invests in Manhattan
The AFIAA Investment Foundation for Real Estate Investments Abroad is making another purchase. It acquired a Grade A office building in Manhattan for 150 million US dollars.
AFIAA buys in Manhattan (Photo: AFIAA)
AFIAA acquired the office property in the course of an asset deal from the US real estate investment and management company Normandy Real Estate Partners.
The twelve-story property is located in Chelsea (Manhattan) at 119-125 West 25th Street, not far from the Empire State Building and Madison Square Garden. The building, with its characteristic brickwork, was built in 1906 and underwent core renovation this year. It offers approximately 12,800 square meters of leasable space. Of this, 89 percent is office space and eleven percent is retail space. The main tenant is fitness equipment manufacturer Peloton Interactive LLC.
Property is contributed to AFIAA Global
According to AFIAA, the purchase is the first acquisition in the New York real estate market in around eight years. In the view of the investment foundation, the office market currently offers good investment opportunities. Particularly in Midtown South Manhattan, the investment foundation sees further potential for rent increases. According to an analysis by JLL, prime rents in New York continued to rise in recent months, with the strongest increase in the submarket of Midtown South Manhattan. Here, premium rents increased by around 5.3 percent within a year.
The property was acquired for the globally active "AFIAA Global" fund, which holds further properties in the US cities of Austin, Chicago, Philadelphia and Washington D.C.. In total, the fund currently has real estate assets of around CHF 1.5 billion. Just a few days ago, AFIAA already acquired a property in Melbourne, Australia. (ah)
