The AFIAA Foundation for International Real Estate Investment is investing $150m (€143m) in a New York office property.
The Zurich-based pension fund manager has bought 119-125 West 25th Street in Chelsea, Manhattan from US real estate investment firm Normandy Real Estate Partners.
Dino Christoforakis, the AFIAA’s head of transactions in North America, said: “The current acquisition marks the first time in about eight years we are investing in the New York real estate market again.
“The office market currently provides good investment opportunities. We are also seeing further potential for rent increases in mid-town south Manhattan in particular.”
The greatest increase in rents, according to JLL, was recorded in the sub-market of mid-town south Manhattan, where premium rent increased by around 5.3% in one year.
The 138,000 sqft renovated building, let to fitness firm Peloton Interactive, was bought by AFIAA for its AFIAA Global fund, which has invested in US cities.
The AFIAA Global fund holds CHF1.5bn (€1.4bn) in assets, of which around 46% is in Europe, 30% in North America and 24% in Australia.
AFIAA chief executive Stephan Kloess said: “We are looking to expand our portfolio to up to CHF3bn by the year 2021, taking yield and diversification aspects into account and concentrating on core-plus investment properties in prime locations in Europe, North America and Australia.
“Properties with a need for refurbishment or vacancy are also interesting for us.”