Done Deal! $1.72 Billion Sale Of Metlife Building Officially Closed

23 May, 2005, New York, NY

Cushman & Wakefield arranges the largest single-building sale in New York City history

Cushman & Wakefield announced today the completion of the $1.72 billion sale of the MetLife Building at 200 Park Avenue, which marks the largest single-building sale in New York City history. The transaction officially closed Wednesday, May 4.

Tishman Speyer Properties purchased the 2.8 million-square-foot property, which connects to Grand Central Terminal, from MetLife. Tishman Speyer's trophy property portfolio also includes the Chrysler Building, the New York Times building and Rockefeller Center.

Cushman & Wakefield exclusively represented MetLife in the transaction, which was managed by Stephen Jones, Executive Managing Director, in conjunction with the New York Capital Markets Group team of Executive Directors Richard Baxter, Scott Latham, Jon Caplan and Ron Cohen.

Robert Merck, who heads up MetLife's real estate investment operation, said: "The sale of 200 Park Avenue represents a success for the MetLife enterprise and the culmination of an extraordinary effort by MetLife's equity team and our partners at Cushman & Wakefield. The success of the sale was the result of an outstanding marketing process, market timing and strong buyer interest in a truly iconic property."

"The offering attracted interest from a significant number of prominent and well-financed investors,” said Mr. Latham. "It was rare to have an asset of this size, scope and unsurpassed prestige on the market in Manhattan."

"The opportunity to acquire one of Manhattan's most significant trophy properties drew interest from institutional and entrepreneurial investors alike, with added fervor supplied by the lending community which aggressively jockeyed for position to provide financing to the prevailing bidder," said Mr. Baxter.

Cushman & Wakefield's successful marketing campaign for the MetLife building, from engagement to closing, was accomplished in less than 12 weeks. "The speed of the sale process can be attributed to our highly collaborative marketing effort working with MetLife, and the ability of serious prospective purchasers to act expeditiously and decisively in a highly competitive bid process," said Mr. Caplan.

According to Mr. Cohen, "Tishman Speyer capitalized on a rare and pivotal opportunity to purchase one of the finest, most recognizable properties in the world."

Some real estate experts speculate that the $1.72 billion sale was not only the largest single-building sale in New York City history, but also world history. Only a few buildings have ever sold for close to as much as the MetLife building at 200 Park Ave.

In 2001, the privatization of the World Trade Center complex through a long-term net lease achieved $3.2 billion, in 2003 Rockefeller Center was sold for $1.8 billion and in 2004 Macklowe Properties purchased the General Motors building for $1.4 billion.

The Met Life Building was originally acquired and occupied by MetLife in 1980 for $400 million from a group that included the former Pan American World Airways. MetLife will remain a long-term tenant in the building, and the highly recognizable and familiar MetLife name will remain atop the building.

For Cushman & Wakefield, the sale is a continuation of impressive performance in 2004, a year in which the firm's Capital Markets Group was listed as the No. 1 firm in the nation in office building sales according to both Real Capital Analytics and Real Estate Alert.

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Founded in New York City in 1917, Cushman & Wakefield is the largest New York-based commercial real estate firm and the preeminent global real estate services provider. From its Midtown Manhattan world headquarters, the firm operates more than 175 offices in 50 countries around the globe and employs more than 11,000 professionals. In addition to office brokerage, Cushman & Wakefield maintains one of the industry's strongest retail services groups. The firm is New York City's largest property manager, with more than 52 million square feet of property under management through its Asset Services division. The company is a leader in investment sales, valuation, research and other advisory services, available through the company's Corporate Services group or directly through the firm's Advisory Group. Cushman & Wakefield maintains eight full-service offices in the New York/New Jersey region. In addition to Midtown and Downtown Manhattan, Cushman & Wakefield maintains leading metropolitan area offices in Stamford, Conn., White Plains and Melville, N.Y., East Rutherford, Iselin and Parsippany, N.J.

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