Commerz Real pays $854 PSF, 4.45 cap rate for asset leased by NYU Langone
NEW YORK — In what might be the biggest single-asset medical office building (MOB) transaction ever, Eschborn, Germany-based Commerz Real, the real assets investment manager of Frankfurt-based Commerzbank AG, closed May 29 on the $332.5 million acquisition of a 25-story, 389,522 square foot medical office building (MOB) in Midtown Manhattan. The seller was Columbia Property Trust Inc. (NYSE: CXP).
The cap rate was 4.45 percent, according to the healthcare real estate (HRE) research firm Revista.
Revista says the largest single-asset MOB transaction in its database prior to this was the sale of the Baylor Charles A. Sammons Cancer Center in Dallas, which sold for $290 million in a transaction that closed June 30, 2017. In that deal, Physicians Realty Trust (NYSE: DOC) bought the 10-story, 458,396 square foot facility from Baylor Scott & White, which had first rights to acquire the building when it became available when Duke Realty (NYSE: DRE) exited the MOB business last year.
Like the Baylor Cancer Center, the 222 East 41st Street building in New York is a single-tenant facility; it is 100 percent occupied by NYU Langone Medical Center.
The previous tenant, the law firm Jones Day, had a lease set to expire in 2016. Prior to that, upon learning that the tenant didn’t plan to renew, Columbia Property Trust launched “a proactive and wide-ranging marketing campaign,” which culminated in an “innovative” 30-year, triple-net lease to for the entire building, “with almost no downtime in occupancy,” according to a Columbia news release distributed yesterday afternoon.
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