Madison Marquette and Perella Weinberg affiliate acquire Long Island City's Center Building
Madison Marquette, a commercial real estate investment and operating company, and certain funds within the Perella Weinberg Partners' Asset-Based Value strategy, have acquired The Center Building, a 450,000 square foot mixed-use commercial property in Long Island City (Queens, New York).
Madison Marquette and affiliates of the Perella Weinberg Partners' Asset-Based Value strategy purchased the building as part of a newly-formed joint venture.
The joint venture expects to invest in strong cash flowing investments in a handful of selected key markets across the US. Affiliates of Madison Marquette will manage all properties acquired by the joint venture.
The joint venture and the acquisition of The Center Building are part of a strategic effort announced by Madison Marquette at the beginning of 2012 to broaden its investment platform by establishing its New York City investment team and portfolio holdings. Madison Marquette initiated its New York City efforts at that time, when Arvind Bajaj (pictured) and Ryan Colbert joined the firm.
"Under the leadership of our Chairman, Amer Hammour, Madison Marquette has a successful 20-year track record of innovation and excellence in client service. The firm continues to seek strategic areas for growth, and Long Island City is a dynamic, highly sought after market, which provides attractive relative value for investors," says Bajaj. "We are pleased to be partnering with Perella Weinberg Partners' Asset Based Value strategy on transactions like this, which expand our investment management platform."
David Schiff, partner at Perella Weinberg Partners and portfolio manager of the Asset Based Value strategy, says: "This exciting project is consistent with our focus on acquiring properties with quality tenants and strong cash flow in high density urban areas. We are delighted to work with Madison Marquette to pursue additional opportunities in the commercial real estate arena."
The Center Building is located a few minutes from Midtown Manhattan. Positioned directly across the East River from Manhattan, Long Island City has become a major focal point for office, retail, multi-family, and hotel development in New York City. The building is 88 per cent occupied, with 71 per cent of the rentable space occupied by investment-grade New York City government agencies.