Thursday, March 16, 2006
The ports deal debacle has not dissuaded Dubia from scooping up New York real estate, according to the NYPost
Dubai investment firm Istithmar, which means "investment" in Arabic, is now gobbling up city office buildings in a scenario New Yorkers might think of as déjà vu Japan all over again.
The latest $2.2 billion deal, we hear, is a direct grab for two Class A office towers owned by Mortimer Zuckerman's Boston Properties at $1,000 a foot. The cap rate would tally at 4.25 percent. A senior executive did not return a call for comment.
The first of Zuckerman's Dubai deals - at Five Times Square, a 2002-era 1.1 million-foot tower - is fully leased to Ernst & Young plus a few smaller tenants including former Mayor Rudy Giuliani's firm, Giuliani Partners, as well as retailers such as Red Lobster.
It should throw off $1 billion in cash flow through 2019, a report in Commercial Real Estate Direct said.
According to CoStar Group data, the twin buildings totaling 1.04 million feet at 280 Park Ave. are home to Deutsche Bank and the National Football League.
"They had gone to the market, interviewed three brokerage firms - CB Richard Ellis, Cushman & Wakefield and Eastdil Secured - and then went radio-silent," advised one top city real estate exec.
At a Left Coast gathering earlier this week, Sam Zell warned of a stealth deal in the city, and those aware of the transaction cautioned it was still a "rumor."