Form Joint Venture to Pursue Commercial Real Estate Acquisitions
NEW YORK, NY, JANUARY 15, 2013 – Madison Marquette, a leading commercial real estate investment and operating company, and certain funds within the Perella Weinberg Partners’ Asset-Based Value strategy, today announced the acquisition of The Center Building, a 450,000 square foot mixed-use commercial property in Long Island City (Queens, New York).
Madison Marquette and affiliates of the Perella Weinberg Partners’ Asset-Based Value strategy purchased the building as part of a newly-formed joint venture. The joint venture expects to invest in strong cash flowing investments in a handful of selected key markets across the United States. Madison Marquette Realty Services will manage all properties acquired by the joint venture.
The joint venture and the acquisition of The Center Building are part of a strategic effort announced by Madison Marquette at the beginning of 2012 to broaden its investment platform by establishing its New York City investment team and portfolio holdings. Madison Marquette initiated its New York City efforts at that time, when Arvind Bajaj and Ryan Colbert joined the firm. Arvind Bajaj and Ryan Colbert joined Madison Marquette in 2012 in the New York office and were instrumental in completing the Center Building Acquisition.
“Under the leadership of our Chairman, Amer Hammour, Madison Marquette has a successful 20-year track record of innovation and excellence in investment and realty services. The firm continues to seek strategic areas for growth, and Long Island City is a dynamic, highly sought after market, which provides attractive relative value for investors,” said Arvind Bajaj, Managing Director and head of the firm’s New York City office. “We are pleased to be partnering with Perella Weinberg Partners’ Asset Based Value strategy on transactions like this, which expand our investment management platform.”
David Schiff, Partner at Perella Weinberg Partners and Portfolio Manager of the Asset Based Value strategy, stated, “This exciting project is consistent with our focus on acquiring properties with quality tenants and strong cash flow in high density urban areas. We are delighted to work with Madison Marquette to pursue additional opportunities in the commercial real estate arena.”
The Center Building offers an exceptional location in Long Island City, Queens, with direct access to both the M & R subway lines. The property is located a few minutes from Midtown Manhattan. Positioned directly across the East River from Manhattan, Long Island City has become a major focal point for office, retail, multi-family, and hotel development in New York City.
Located at 33-00 Northern Boulevard, the multi-tenant office property has several attractive transportation alternatives, and tenants have access to underground parking. The building is 88 percent occupied, with 71 percent of the rentable space occupied by investment-grade New York City government agencies.
“Long Island City is a very attractive investment market,” said Ryan Colbert, Director of Investments at Madison Marquette. “The Center Building has an irreplaceable location and a blue-chip tenant base. The combination of having both stable cash flow and upside potential makes this a very unique investment.”
About Madison Marquette:
Madison Marquette Property Investments (MMPI), is the investment arm of Madison Marquette, which invests primarily in retail, office and mixed-use real estate assets in the U.S. Madison Marquette Retail Services (MMRS), an operating platform of Madison Marquette, provides a full range of real estate services for over 20 million square feet of commercial properties throughout the United States. Madison Marquette specializes in enhancing the value of commercial real estate investments through an integrated approach to sourcing, acquisition, leasing, property management, active marketing, development and disposition services. Madison Marquette is based in Washington DC, and it has offices in New York, San Francisco, Los Angeles, South Florida, Seattle and San Diego.
About Perella Weinberg Partners’ Asset Based Value Strategy:
Perella Weinberg Partners’ Asset Based Value strategy is a leading post-financial crisis provider of U.S. specialty finance solutions. Since inception in 2008, the strategy has grown to manage in excess of $2.0 billion in equity capital through a number of different investment vehicles. Perella Weinberg Partners’ Asset Based Value strategy can deliver significant capital, technical expertise and infrastructure in a wide range of asset classes and structures, including both real and financial assets. Capital for the strategy is contributed by, among others, a diversified group of institutional investors who seek to invest in compelling opportunities at favorable valuations. For more information on Perella Weinberg Partners’ Asset Based Value strategy, please visit http://www.pwpartners.com.
About Perella Weinberg Partners:
Perella Weinberg Partners is a leading independent, client-focused financial services firm providing advisory and asset management services to a broad, global client base, including corporations, institutions and governments. The Advisory business advises clients on mergers, acquisitions, defense advisory, financial restructuring, private capital raising, and pension matters. The Asset Management business includes a suite of hedge fund strategies, private investment funds (including real estate) and outsourced CIO solutions. Together with its affiliates, the Asset Management business has capital commitments and managed assets of approximately $8.5 billion. With more than 400 employees, Perella Weinberg Partners maintains offices in New York, London, Abu Dhabi, Austin, Beijing, Denver, Dubai, and San Francisco. For more information on Perella Weinberg Partners, please visit http://www.pwpartners.com.