Bloomberg News

Invesco Invests in Park Avenue Tower Once Owned by Helmsley

June 10, 2011

(Updates with information on buyout of Goldman Sachs, starting in first paragraph.)

June 10 (Bloomberg) -- A unit of Invesco Ltd., a global money manager, invested in 230 Park Ave. as owner Monday Properties recapitalizes the landmark Manhattan office tower, buying out a Goldman Sachs Group Inc. real estate fund.

Monday Properties, led by Anthony Westreich, will be the operating partner and will continue to manage and lease the building, the New York-based investment firm said in a statement. Goldman’s Whitehall funds, a partner in the $1.15 billion purchase of the tower in 2007, is no longer a co-owner, Loren Riegelhaupt, a Monday spokesman, said in an e-mail.

The deal “commences this new chapter for 230 Park Ave.,” Westreich said in the statement, calling the 34-story tower atop Grand Central Terminal “a unique landmark.” Terms of the transaction with Invesco’s Dallas-based real estate unit weren’t disclosed.

Monday and Whitehall’s acquisition was one of several in 2007 that approached or exceeded $1,000 a square foot near the peak of New York’s office market. Prices tumbled the following year as losses on residential loans caused credit to dry up.

Goldman’s highly leveraged Whitehall funds were among those that lost value in the plunge. A call after business hours to Gia Moron, a Goldman spokeswoman, wasn’t immediately returned.

Whitehall estimated at the end of last year that the property was worth about $300 million less than its investment, indicating Goldman took a loss on the transaction, the Wall Street Journal reported today.

Built in 1929 as the headquarters for the New York Central Railroad Co., the Beaux Arts tower was named the Helmsley Building after New York real estate investor Harry Helmsley acquired it. Monday Properties, which owns offices in the New York and Washington areas, has managed the building since 1998 and owned it since 2007, according to the statement.

--Editors: Christine Maurus, Daniel Taub

To contact the reporter on this story: David M. Levitt in New York at dlevitt@bloomberg.net

To contact the editor responsible for this story: Kara Wetzel in New York at kwetzel@bloomberg.net


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