Prudential Real Estate Investors has formed a USD84m joint venture with Madison Capital to acquire 18,889 square-feet of ground floor retail space at The Astor, on New York's Upper West Side.
PREI, acting on behalf of German institutional investors in its US Property Fund V, is the real estate investment management and advisory business of Prudential Financial.
"Urban retail in premier cities fits well within the strategy of our current fund as well as with many of our German institutional investors' own accounts throughout their home market," says David Pahl, managing director at PREI. "New York City has always offered world class retail opportunities and has consistently been a strong performer through all economic cycles, including the well-established Upper West Side neighbourhood, making it a popular location for our investors."
Located at 2151 Broadway in the Upper West Side submarket, The Astor is situated amid an affluent, established neighbourhood that offers a wide range of restaurant, shopping and entertainment options. The nearby Museum of Natural History, Lincoln Center and Central Park are also major cultural and institutional draws to the neighbourhood. Demand for retail space in this area has consistently remained strong, experiencing solid retail rent growth since the recent national economic downturn.
The retail space, anchored by Barney's and Lululemon, is on the ground floor of a 13-story residential building, which was constructed at the turn of the 20th Century.
"We are pleased to be the new owners of the Astor's retail component; an iconic property located on the Upper West Side with an outstanding mix of national and local tenants," says Richard Wagman, managing partner of Madison Capital.