Morgan Stanley has offloaded its 28-story office building at 2 Park Ave. to Haddad Brands for approximately $360 million. This deal marks one of the largest office investment sales in New York City this year.
The property at 2 Park Ave. — a prestigious Midtown Manhattan office tower — was acquired by Morgan Stanley in 2007 for $519 million.
2 Park Avenue, New York, NY. Property image courtesy of CommercialEdge.com
Haddad Brands, a renowned apparel and accessories company, will not only acquire the building, but also occupy its 1 million square feet of office space. The company’s decision to become a building owner aligns with a growing trend of occupiers taking ownership of their real estate.
One of the recent examples of this is Kering, the parent company of luxury brands Gucci and Balenciaga, which acquired 715-717 Fifth Ave. from Wharton Properties and SL Green Realty for $963 million. Similarly, Ikea took a stake in Extell Development’s 570 Fifth Ave. for a small-format store, while Uniqlo purchased a portion of 666 Fifth Ave. from Vornado for $350 million.
Newmark’s Adam Spies, Adam Doneger, Doug Harmon, Willis Robbins, Joshua King and Marcella Fasulo represented Morgan Stanley in the transaction. The deal is expected to close by the end of 2024.
Newmark’s team has been at the heart of several other high-profile real estate transactions throughout 2024. In addition to the 2 Park Ave. deal, its teams also facilitated the sale of Vanbarton Group’s 15 Laight St. to Hyundai Motor Group for $275 million and advised Nvidia on its $374 million acquisition of office space from Preylock Holdings. Furthermore, the team was involved in the $224 million debt trade on RFR Holding’s 522 Fifth Ave., where several occupiers expressed interest in acquiring the property. They also brokered a $130 million deal for SL Green Realty to acquire Morgan Stanley’s office condo at 500 Park Ave. last month.
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