Manhattan, NY Columbia Property Trust, Inc. has completed the sale of 222 East 41st St. in Midtown to Commerz Real, real assets investment manager of German Commerzbank, for a gross sales price of $332.5 million.
The 390,000 s/f Midtown East tower had been fully occupied by one tenant since 2007, in a lease that was set to expire in 2016. Upon learning that the tenant would be vacating, Columbia launched a proactive and wide-ranging marketing campaign, which culminated in an innovative, 30-year lease to NYU Langone Medical Center for the entire building, with almost no downtime in occupancy.
Originally constructed in 2001, the 25-story office tower has been converted by NYU Langone over the past two years into a multispecialty ambulatory care facility that began accepting patients last month.
“We were very pleased to secure an esteemed tenant on a long-term lease, which significantly increased the value of the property,” said Nelson Mills, president and chief executive officer of Columbia. “Proceeds will further strengthen our balance sheet in the near term and will eventually be recycled into higher growth investment opportunities.”
CBRE’s capital markets team, including Darcy Stacom and Bill Shanahan, represented Columbia in the marketing effort and transaction.