The California Public Employees’ Retirement System (CalPERS) has completed its purchase of a New York office tower.

The US pension fund bought 787 Seventh Avenue in Manhattan for an undisclosed amount through its external real estate manager, Commonwealth Partners.

“The acquisition follows our real estate strategic plan to invest in core, income generating properties,” the fund said.

Press reports suggest the building, between 51st and 52nd Street, was sold for $1.9bn (€1.7bn).

AXA sold the 142,660 sqm asset, built in 1985 and home to AXA Financial, AXA Equitable Life Insurance and Mutual of New York.

Other tenants include BNP Paribas, UBS and Citigroup.

As reported last year, CalPERS is investing $3.8bn with its real estate managers. 

The fund’s existing managers will be given the capital to continue investing in the asset class, according to a board meeting document.

Major New York assets have attracted significant investment in recent months.

Late last year, Norges Bank Investment Management invested in a portfolio of New York offices, paying $1.6bn for its stake in a joint venture. 

The investment arm of the Norwegian sovereign wealth fund took a 44% stake in a portfolio of 11 office properties. 

The assets are held in a joint venture with Trinity Wall Street.

 

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