General Growth Properties is seizing on rising New York rents, acquiring stakes in three retail properties in Manhattan for nearly $450 million. The REIT is acquiring 50% stakes in 685 Fifth Ave., 530 Fifth Ave. and 218 W. 57th St.
SL Green Realty and private-equity firm Stonehenge Partners will acquire eight New York-based multifamily and retail properties for $416 million. They include 724 Fifth Ave., which houses Prada, and 402 rental units in midtown.
Vornado Realty Trust is said to be injecting tens of millions of dollars into a rescue package that would give it a 50% stake in Jared Kushner's 666 Fifth Ave. building in midtown Manhattan, according to sources. Kushner reached an agreement with troubled loan specialist LNR Property to modify a $1.2 billion mortgage on the property.
Pebblebrook Hotel Trust has purchased a 49% stake in six boutique hotels in New York City for $152 million. The deal involves five Affinia properties and the Benjamin hotel in midtown Manhattan. Denihan Hospitality Group will retain a 51% stake in the properties.
German real estate fund KanAm Grund is selling another Washington office: 1899 Pennsylvania Ave., a 186,462-square-foot building in the central business district. The company just sold the Evening Star building for $180 million. "KanAm is capitalizing on the scarcity of product available and striking while the dry powder is hot," says John Kevill, a broker at Jones Lang LaSalle.