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Report: 111 Eighth Avenue Sold

Carrier Hotels Staff Posted Feb 2, 2004

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Taconic Partners will sell 111 Eighth Avenue, one of the premier carrier hotels in Manhattan, to the German firm Jamestown for $775 million, according to media reports.

The 2.8 million square foot 111 Eighth is the third-largest building in New York City, occupying a full square block between Eighth and Ninth Avenues, and 15th and 16th Streets. It is more than 90 percent occupied, with a tenant list including MCI, Sprint, Level 3, Qwest, NTT, XO Communications, Cable & Wireless and Switch and Data.

Jamestown will reportedly acquire 75 percent of the property, with the New York State Common Retirement Fund holding the remaining 25 percent interest while Taconic continues as the property manager. About $500 million of financing for the deal was provided through Greenwich Capital.

Taconic acquired 111 Eighth Avenue in January 1998, and redeveloped the property to attract office and telecom tenants, installing mission-critical infrastructure.

Taconic Investment Partners is a real estate investment company founded by Paul Pariser and Charles Bendit that specializes in office and multifamily properties. Taconic has acquired 8.1 million square feet of office property, of which it has redeveloped more than 5.5 million square feet in New York City, Chicago, Atlanta and Washington, DC.

Twenty-year-old Jamestown is a closed-end fund that has been investing significantly since 1993, focusing on Class A, trophy CBD office and retail properties in major cities.