Tishman Speyer, Bouwinvest launch US office fund with Chrysler Building as first buy
What's the deal? Tishman Speyer and Bouwinvest Real Estate Investors have launched a joint fund to buy top-tier office properties across the US. The vehicle, known as Bouwinvest-Tishman Speyer SMA, made its first investment in Manhattan's Chrysler Building.
What's the endgame? The fund will target all major US office markets, plus cities with established growth reputations. The partners plan to acquire well-located assets and reposition them, with what Bouwinvest's Robert Wagenaar called a "brown-to-green angle."
Why now? Wagenaar said the firms see "a compelling tactical opportunity in the US office market to invest with a strong locational focus." The approach, he added, reflects how Bouwinvest invests internationally: "selectively, early in the cycle and through specialist partners like Tishman Speyer."
The first buy: The fund financed Tishman Speyer's acquisition of a 150-year ground lease for the Chrysler Building earlier this month. That deal came with a $235 million agreement to renovate the historic tower.
Neither the fund's size nor the number of properties it will target has been disclosed.
The partnership is not new. Bouwinvest and Tishman Speyer also recently launched the Korea Living Venture, a $400 million fund to acquire, reposition, and develop multifamily assets in Seoul, South Korea.
The signal: Investors are returning to US offices selectively, betting on prime assets in markets with durable demand and limited new supply. Nate Shanok, senior managing director at Tishman Speyer, said the partners see "attractive opportunities to acquire well-located office assets in markets with durable demand drivers and limited new supply, and reposition them to meet the evolving needs of today's customers."
Read more: commercialobserver.com
Image credit: Pascal Subtil
