Andrew Chung’s Innovo property takes over HSBC building in Bryant Park

HSBC Tower (Google)

The Israeli company that owns the HSBC tower in Midtown Manhattan found a local buyer in Innovo Property Group, which agreed to purchase the trophy asset for $ 855 million.

Reuters reports that Tel Aviv-based finance giant Israel Discount Investments on Sunday announced the sale to the company led by Andrew Chung, taking a net loss of $ 45 million on the building in a bid to increase liquidity and reduce debt as part of a plan to reinvest the company’s dollars in Israel.

With the purchase of the 30-story tower, IPG, which already owns a 20-acre industrial site at 2505 Bruckner Boulevard in the Bronx and recently purchased a 9-acre site at 1110 Oak Point Avenue and 155 Tiffany Street in Hunts Point, is getting their hands on a signature property loaded with Class A office space.

The sale is expected to close on April 1, 2022, according to Reuters. A subsidiary of the IDB group, Eli Elefant’s Property and Building Corporation valued the skyscraper, located at 452 Fifth Avenue near Bryant Park, at $ 864 million as of September 30. In October, she hired Roy March and Gary Phillips of Eastdil Secured to market the property and expected to get at least $ 850 million, or $ 982 per square foot, for it.

PBC bought the building for $ 330 million, or $ 381 per square foot, in 2010 from HSBC when the bank was selling office buildings in the wake of the financial crisis. He then invested $ 100 million to renovate the tower, adding a new entrance and a new lobby and high-rise elevators. The site is also home to a 10-story Knox Beaux-Arts building built in 1902.

In 2017, HSBC signed an agreement to continue to lease its 548,000 square foot space in the tower until 2025. The original lease was due to expire this year.

Rumors about the potential sale of the building have been circulating for years. In 2015, PBD had received offers of up to $ 900 million for the property, offers it declined with Elefant saying The real deal At this time, the company was in growth mode in the United States and had no intention of releasing its trophy asset in New York.

PBC put the building on the market for a brief period in 2013.

Chung’s company is heavily invested in warehouses and industrial sites in the outer boroughs, including the South Bronx, Maspeth, Queens and Long Island City. In 2016, Chung made a piece for 16 Court Street, an office tower in downtown Brooklyn, which ended up being sold to the CIM Group for $ 171 million.

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