PREI and SJP sell minority interest in New York City's Eleven Times Square

Prudential Real Estate Investors (PREI) and SJP Properties revealed the sale of a 45% interest in Eleven Times Sq., the partnership's 1.1 million s/f office and retail tower to Norges Bank Investment Management based on a gross value of $1.4 billion. PREI is the real estate investment and advisory business of Prudential Financial, Inc. As part of the transaction, the partnership will continue to own and control the building, while SJP Properties, as the operating partner, will continue to manage, lease and operate the building. SJP will also maintain its headquarters at the tower. The minority sale to Norges Bank Investment Management followed a marketing process led by CBRE, which attracted significant interest from a global roster of international organizations and sovereign wealth funds. Other terms of the transaction were not disclosed. "The strength of the tenant roster and the state-of-the art features at Eleven Times Sq., combined with its central location in the heart of New York City, allowed us to capitalize on the strong investor demand for core office properties in New York," said Kevin Smith, a PREI senior managing director and head of the Americas business. "This transaction gives us the opportunity to retain control of this trophy asset with our long-term partner SJP while also allowing PREI to redeploy capital into other core investments that provide steady returns for our investors." "This transaction is reflective of Eleven Times Square's position as a premier destination for leading global and local companies," commented Jeff Schotz, executive vice president for SJP Properties. "Given the success of our leasing program and robust demand for our remaining premium tower space, we believe that now is an appropriate time to recapitalize the building as we continue to look for opportunities to further expand our New York metropolitan area market presence." Completed in 2010 and strategically located in a transportation hub at the intersection of Eighth Avenue and 42nd Street, the LEED-Gold-certified Eleven Times Square, inclusive of signed leases and current activity, will be approximately 90 percent leased. The property is anchored by Microsoft Corp. and global law firm Proskauer, along with a diverse roster of tenants across the finance, technology, legal, and media industries. "SJP Properties operates this magnificent building with a level of integrity, professionalism and responsiveness that is truly unmatched," said Ron Sernau, chairman of the Real Estate Department at Proskauer. Eleven Times Square features precedent-setting LEED Platinum-level indoor air quality and a highly efficient glass curtain wall, along with innovative concrete core construction that supports the building's infrastructure and provides enhanced safety. The building's concierge-level services include a high-tech, state-of-the-art elevator dispatch system that minimizes tenant wait and is integrated with the building's security system; an advanced visitor check-in system; a large, secured, fully-efficient loading dock; and a messenger/mail center and delivery area specifically designed to maximize ease of use by tenants. The building's office space features floor-to-ceiling windows and column-free corner offices, as well as multiple private terraces. Situated between Bryant Park and Hudson Yards, Eleven Times Square offers convenient access to the numerous signature restaurants, world-class hotels and entertainment and shopping venues. Additionally, the building's location allows tenants and visitors to benefit from the presence of an on-site subway entrance connecting to 12 subway lines, the Port Authority bus terminal and commuter parking lot. Grand Central Terminal and Penn Station are just one subway stop away.