GLL Real Estate Partners, an institutional real estate investment manager with operations throughout Europe as well as North and South America, has purchased 14,000 sq. ft. of retail condominiums in New York from Hines for $41.9 million.
The retail spaces are located on the ground floor of Jean Nouvel’s iconic residential development, 40 Mercer, on a full block fronted by Broadway, Grand Street and Mercer Street in SoHo. The property is fully leased to retail tenants including Wachovia, Bose, Dermalogica, and Vivienne Tam.
“Having fully leased the project’s retail component to a mix of high-quality tenants, we are delighted to have sold this exceptional property to GLL, one of Europe’s rapidly growing institutional real estate investment firms,” said Tommy Craig, senior vice president of Houston-based Hines, in a press release.
Barry McGowan, chief investment officer of Munich, Germany-based GLL, added that “both New York and London have surprised everyone with the speed and momentum of the recovery of the commercial real estate markets.” The 40 Mercer development represents GLL’s entry into the New York market.
“We feel extremely fortunate to be able to invest in such a superb, high-quality asset,” said McGowan. With seven acquisitions over the last 10 months, GLL has been one of the most active foreign property investors in the United States. “Our intention is to continue to make new investments throughout the country.” Since 2001, GLL has invested approximately $5 billion in 70 core assets for commingled funds and separate account clients.
Hines has been active in the New York real estate market since 1984, and is actively marketing another successful luxury residential development, the 30-unit, One Jackson Square, in the West Village. With offices in more than 100 cities in 17 countries, and controlled assets valued at approximately $22.2 billion, Hines is one of the largest real estate organizations in the world.