In one of the biggest acquisition deals this year, Chicago-based Equity Office Properties Trust has acquired 1301 Avenue of the Americas - the Credit Lyonnais Building in Midtown Manhattan - in partnership with locally based Lehman Brothers. The partnership acquired the 1.7 million sq. ft. Class-A tower from a group that includes Tishman Speyer Properties, Dallas-based Sarofim Realty Advisors and Credit Lyonnais for $715 million, or about $420 per square foot. The 46-story tower is fully leased.
The deal's capitalization includes $550 million in mortgage debt consisting of both first mortgage and mezzanine debt, equity retained by the existing owners and additional capital funded by Lehman Brothers.
Also in New York, Equity has leased 114,330 sq. ft. at Park Avenue Tower to international law firm Paul, Hastings, Janofsky & Walker LLP. The law firm recently acquired Battle Fowler, which occupied 143,461 sq. ft. at Park Avenue Tower, a Class-A tower located at 65 E. 55th St. In July 2001, Paul, Hastings will consolidate its operations at Park Avenue Tower, and, with the occupancy of the former Battle Fowler space, occupy a total of 250,000 sq. ft. on 16 floors.