Securing the perfect financing and management partner for a premium office in NYC
320 Park Avenue is a premium office building in midtown Manhattan. The owner and lead tenant sought JLL’s advice on restructuring the debt and equity.
Capital Markets - Debt & Equity Advisory
A highly desirable asset
Owned by Mutual of America, one of the largest retirement providers for employers in the United States, this property serves as the company headquarters where they occupy 25% of the space. Additionally, 320 Park Avenue is home to many high-profile office and retail tenants.
Managing a Class A office block in a prime location requires specialized real estate expertise along with significant financial and human resources. Following a US $35 million refurbishment that boosted the building’s value, the owner and lead tenant sought JLL’s advice on restructuring the debt and equity. The goal? Release capital and find a long-term financial partner who could manage the asset on their behalf.
Mutual of America needed a like-minded, long-term financial partner capable of securing the future of the property. Combining our expertise in equity advisory, refinancing and global-to-local real estate knowledge, JLL set out sourcing a large investor with a strong balance sheet and proven track record of actively managing real estate.
Securing a cross-continent joint venture
A strategic approach was essential to market the asset among a highly curated group of real estate advisors that would be a good fit with Mutual of America’s business strategy. JLL Capital Markets tapped into its extensive network of global investors and the German multinational insurance company, Munich Re, proved to be the perfect partner.
JLL’s equity advisory team successfully recapitalized the building to allocate a 25% minority ownership interest to Munich Re and formed a joint venture deal with their wholly-owned subsidiary, MEAG. This solution provided Mutual of America with ongoing advisory management services.
Beating a four-year record
Mutual of America now has the resources to secure the property’s long-term success and MEAG has widened its presence in the U.S. market. A notable accomplishment for the New York office market, JLL’s Capital Markets team valued Mutual of America’s space at US $750 million giving it the lowest cap rate within the NYC office sector in four years, opening the door to further landmark deals with high-profile firms.
Identifying business synergy between a real estate owner and a real estate advisory firm has propelled a premium asset to the top of the market. Backed by robust financing, it will continue to attract and retain tenants in the years to come.