German fund manager Commerz Real has bought a 25-storey office building in New York City for $332m (€286.4m).
Commerz Real said it bought 222E 41st Street from Columbia Property Trust for its hausInvest open-ended real estate fund.
222E 41st Street was developed in 2001, the asset has a lettable area of 36,000sqm.
Commerz Real said a lease agreement, known as true net, with the tenant New York University (NYU) means that all the management and maintenance costs and risks are borne by the tenant.
The residual term is 30 years and rent increases have been agreed upon contractually, Commerz Real said.
Henning Koch, the global head of transactions at Commerz Real, said: “We plan to retain this premium property in the long term, if only for the outstanding location and the excellent lease agreement.
“Thus our investors can best profit from rising rental income and future value appreciation.”