Top 20 Office Deals in the First of Half of 2017

(Editor’s note: This article is adapted from a blog on Commercial Cafe. For more information, please visit: www.CommercialCafe.com)

After a cautious, yet fruitful year in 2016, investors continue to bet on the bustling U.S. office sector. We used in-depth Yardi Matrix data to compile a list of the 20 largest office transactions to close during the first six months of the current year, and the results paint a promising picture of the market in 2017.

The U.S. office sales market fired on all cylinders during the first half of the year, and the two largest deals each topped the $2 billion mark. By comparison, the largest office sale of 2016 fetched $1.95 billion–and that was a 19-piece portfolio deal.

Another thing that stands out is the fact that investors are shifting their focus outside New York City this year. Compared to 2016, when most office deals closed in Manhattan, the first half of 2017 showed more diversity. Bustling markets such as Washington, D.C., Los Angeles, San Francisco and Boston all made the top 20, while the third-largest office transaction so far this year closed in Charlotte.

Ballantyne Corporate Park, Charlotte

Various portfolio and partial stake deals made the list, which is in line with the trend we witnessed in 2016. The largest portfolio deal so far in 2017 was the $2.2 billion sale of Duke Realty’s medical office portfolio to Healthcare Trust of America.

Once again, Asian investors landed in the limelight, and HNA Group led the pack with its $2.21 billion purchase of 245 Park Ave. in Manhattan. Singapore-based GIC Real Estate made the list thrice, shelling out close to $2 billion on U.S. office assets together with its joint venture partners. Other high-profile foreign buyers include Ivanhoe Cambridge, the Qatar Investment Authority, Deutsche Bank, Mori Trust and the Korea Investment Corp.

Check out the top 20 office sales of H1 2017 below, and scroll down for more details on each contender:

Top 20 US Office Deals of H1 2017

# Property City Sale price Buyer Seller
1 245 Park Avenue New York $2,210,000,000 HNA Group Brookfield Properties + New York State’s Teachers Retirement System
2 Duke Realty Medical Office Portfolio $2,200,000,000 Healthcare Trust of America Duke Realty
3 Ballantyne Corporate Park Charlotte $1,174,350,000 Northwood Investors Bissell Companies
4 60 Wall Street New York $1,040,000,000 GIC Real Estate + Paramount Group Paramount Group
5 The Landmark at Eastview Tarrytown, N.Y. $720,000,000 Regeneron Pharmaceuticals BioMed Realty
6 10 St. James Avenue & 75 Arlington Street Boston $673,000,000 Mori Trust Liberty Mutual Insurance
7 85 Broad Street New York $652,000,000 Ivanhoé Cambridge + Callahan Capital Properties MetLife Real Estate + Beacon Capital Partners
8 1999 Avenue of the Stars (SunAmerica Center) Los Angeles $572,850,000 JMB Financial Advisors The Blackstone Group
9 Greenway Portfolio Houston $512,100,000 CPPIB + TH Real Estate + Silverpeak Real Estate Partners Parkway Properties
10 44 Montgomery Street San Francisco $475,400,000 Beacon Capital Partners Seagate Properties
11 Waterview Arlington, Va. $460,000,000 Morgan Stanley Paramount Group
12 One California Plaza Los Angeles $459,000,000 Rising Realty Partners + Colony NorthStar Beacon Capital Partners
13 100 Northern Avenue Boston $447,000,000 Deutsche Bank The Fallon Company
14 Lafayette Center Washington, DC $404,000,000 GIC Real Estate + Korea Investment Corp Beacon Capital Partners
15 James K. Polk & Zachary Taylor Buildings (Pentagon Center) Arlington, Va. $379,500,000 GIC + Korea Investment Corp Beacon Capital Partners
16 HBO Building New York $370,000,000 Brookfield Properties + The Swig Co Eugene A. Hoffman Management
17 100 High Street Boston $370,000,000 Rockpoint Group CBRE Global Investors
18 6-Property Portfolio Short Hills, N.J. & Madison, N.J. $367,800,000 Mack-Cali Realty Corporation RXR Realty
19 1, 2 & 3 Center Plaza Boston $365,000,000 Synergy Investments + GreenOak Real Estate Shorenstein Properties
20 1299 Ocean & 429 Santa Monica Santa Monica $362,000,000 Douglas Emmett Inc + Qatar Investment Authority Blackstone Group

Data provided by Yardi Matrix

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