The Sungate Trust, formed for the family of Chinese real estate developer Zhang Xin, and M. Safra and Co. Inc., an investor firm tied to Brazilian banker Moise Safra acquired a 40 percent stake in the General Motors building in New York City.
CBRE Group arranged the transaction. The stake in the 50-story, 2-million-sq.-ft. property was sold by Goldman Sachs’ U.S. Real Estate Opportunities Fund and Dubai-based private equity firm Meraas Capital, according to CBRE. Boston Properties continues to hold the remaining 60 percent stake.
The financial terms of the deal were not disclosed, but various reports put the value of the 40 percent stake at between $1 billion and $1.4 billion. That puts the total valuation of the property at roughly $3.5 billion.
CBRE’s Darcy Stacom and Bill Shanahan arranged the deal.
“This landmark sale signals a return to the billion-dollar plus level for an individual investment transaction and is the recognition of the value for elite trophy assets by the most sophisticated global investors,” Stacom said in a statement. “The sale underscores both the GM Building’s universal appeal as one of the world’s most important commercial assets and New York City’s undiminished value, as the premier location for trophy investment properties.”
The General Motors building occupies the entire block between Fifth and Madison Avenues and 58th and 59th Streets. It was built in 1968. The building hosts Apple’s glass cube store on its Fifth Avenue plaza. Other notable tenants include the Estee Lauder Cos., Icahn Enterprises and law firm Weil, Gotshal and Manges.