Investment Supports Joint Venture Strategy of Focusing on Large, High-Quality Assets in Gateway Cities
New York, November 18, 2014 — TIAA-CREF, a leading U.S. financial services organization, today announced the acquisition of a prime real estate asset as part of its joint venture with partner Norges Bank Investment Management, manager of the Norwegian Government Pension Fund Global.
In New York City, TIAA-CREF has entered a joint venture to own and operate the leased fee position on 2 Herald Square (also known as 1328 Broadway), an office building with high-profile, ground-floor retail. TIAA-CREF will own a 50.1% interest, with Norges Bank Investment Management owning the remaining 49.9%.
"We are continually seeking core assets with durable income streams and high-occupancy. This location is sought after by both retail and office tenants," said Suzan Amato, Managing Director of Managed Accounts and Strategic Joint Ventures for TIAA-CREF.
The property is an approximately 365,000 square foot, 12-story retail and office building located in Manhattan's 34th Street / Penn Station retail corridor. It occupies the entire block front where 6th Avenue and Broadway converge between 34th and 35th Streets, and is directly across the street from the long-standing Macy's department store. The ground floor of the property is leased by retail tenants H&M and Victoria's Secret. The seller of the fee position is SL Green. In addition to being a prime retail and office location, Herald Square is situated close to tourist attractions such as the Empire State Building and Bryant Park, attracting a spate of new hotel development.
"This acquisition provides a senior investment position in a flagship retail location that continues to strengthen," said Sam Flood, Senior Director, Acquisitions, Northeast Region, TIAA-CREF Global Real Estate.
TIAA-CREF (www.tiaa.org) is a national financial services organization with $840 billion in total assets under management (as of 10.1.14) and is the leading provider of retirement services in the academic, research, medical and cultural fields.
TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products.
About Norges Bank Investment Management
Norges Bank Investment Management is the asset management division of Norges Bank, the Norwegian central bank. As manager of the Government Pension Fund Global, its mission is to safeguard and build financial wealth for future generations in Norway. Norges Bank Investment Management aims for the highest possible long-term return within the investment mandate set by the Ministry of Finance. The fund is invested globally in equity, fixed income and real estate markets and had assets worth 5,534 billion kroner, or about $860 billion, as of September 30, 2014.