New York – China’s HNA Holding Group Co Ltd has agreed to purchase a marquee Manhattan office building for $2.21 billion in a deal that showcases the role of Chinese capital in New York’s heady commercial real estate market.
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The deal for 245 Park Avenue has not closed but HNA, a Chinese conglomerate that has been on an acquisition spree, signed a purchase and sale agreement, a source familiar with the transaction said on Tuesday.
The acquisition from majority owner Brookfield Property Partners LP and New York State Teachers’ Retirement System, which has a 49-percent stake, would mark one of the highest prices ever paid for a New York office building.
A prior Brookfield entity acquired the 45-floor building in 1996 from the bankruptcy of Olympia & York. NYSTRS acquired its stake in 2003.
China accounted for 30 percent of some $15.4 billion in cross-border investment in U.S. real estate last year, with almost half placed in New York, according to Cushman & Wakefield.
The transaction was first reported by The Real Deal.