Sovereign Partners has finalized the acquisition of the prominent 2 Grand Central Tower, a 667,000-square-foot office building located at 140 E. 45th St. in Midtown Manhattan. The deal, valued at $273 million, saw the property trade for $3 million above the initial asking price.
Key Takeaways
- Sovereign Partners purchased 2 Grand Central Tower for $273 million.
- The transaction was facilitated by Eastdil Secured, representing the seller, Rockwood Capital.
- MetLife Investment Management provided $177 million in acquisition financing.
A Landmark Transaction in Midtown Manhattan
The 44-story tower, a significant fixture in the Grand Central submarket, was represented by Eastdil Secured. The sale marks a new chapter for the property, which was originally developed by Macklowe Properties in the early 1980s. Rockwood Capital had previously acquired the building from BXP in 2011 for $401 million.
Financing and Market Confidence
MetLife Investment Management played a crucial role in the transaction, providing $177 million in acquisition financing. This follows their previous involvement with the property, having issued a $262.6 million note in July. Gary Phillips of Eastdil Secured expressed optimism about the deal, noting on LinkedIn that the investment signifies "a clear vote of confidence in the future potential of this trophy property and the Grand Central submarket it helps define."
Phillips, along with Will Silverman of Eastdil, managed the sale process. The acquisition by Sovereign Partners is anticipated to usher in a new phase of evolution for the well-established Midtown Manhattan office building.