Morgan Stanley Real Estate announced today that its Prime Property Fund ® has acquired 2 Park Avenue in Midtown Manhattan from a joint venture between L&L Holding Company, LLC and its institutional partner for $519 million. L&L Holding Company, LLC will maintain a minority position in the property and will continue as the leasing and managing agent for the property.
? The acquisition of 2 Park Avenue, with its institutional quality tenants, represents a unique opportunity to invest in the Manhattan office market, which is characterized by high barriers to entry, strong demand and limited new supply, ? said Dave Hardman, Managing Director and Head of U.S. Real Estate Investing, Morgan Stanley. ? With Midtown Manhattan ' s vacancy at 4.4 percent, the lowest of any submarket in the United States, we believe we have acquired a high-quality, well-located asset in a market poised for material rental rate growth over the next several years. ?
2 Park Avenue contains 1 million square feet and is currently 95 percent leased to multiple tenants. Originally built in 1928 and renovated in 1989 and 2006, 2 Park Avenue is an architecturally significant building from the Art Deco era designed by Ely Jacques Kahn. The building appeals to a variety of tenants given the varied floor plate size. Located on Park Avenue between 32 nd and 33 rd Streets, the building is a convenient 10-minute walk to Grand Central Station and Pennsylvania Station and has a subway entrance just outside the building. Amenities include the Artisanal Fromagerie & Bistro, a 43-car parking garage and two banks.