GLL enters into a 99-year ground lease at Fifth Avenue trophy asset
By: GLL Real Estate Partners
The 17-story building houses a 57,000 sq.ft. H&M store on the first five floors and has extensive retail frontage along Fifth Avenue, with 127,000 sq.ft. of office space above. Floor plates for the office floors range from 5,000 to 15,000 sq.ft.
"We have actively been investing in New York City's real estate market since 2010, acquiring commercial assets in prime locations. Acting on behalf of a group of German institutional investors, 589 Fifth Avenue constitutes our largest NYC transaction to date," said Christian Goebel, Executive Vice President, GLL.
"Having recently become a member of the Macquarie Group, we continue to seek value creating opportunities for our client base, adding unique investment opportunities to our portfolio and growing our assets under management, here in the U.S. as well as internationally,"
Terms of the deal were not disclosed but this ground lease transaction exceeds the firm's previous largest transaction in Manhattan, the acquisition of a full block retail condominium on the Upper East Side.
GLL Real Estate Partners, a wholly owned subsidiary of Macquarie Group, is a globally active real estate fund manager and investment advisor headquartered in Munich, Germany. GLL operates 17 offices across the U.S., Europe, Asia, and Australia. The group currently manages USD 8.4 billion of assets, including more than USD 4 billion in the United States. GLL employs varying commercial property strategies serving an investor group that includes pension funds, insurance companies and sovereign entities.