CalSTRS plans to sell its majority stake in 120 Broadway, a lower Manhattan office tower and national historic landmark co-owned by developer Larry Silverstein.
The $129.7 billion California State Teachers’ Retirement System, West Sacramento, is seeking to profit from its 2004 investment in the 40-story skyscraper, also known as the Equitable Building, according to an e-mailed statement from its adviser, CB Richard Ellis Investors. Mr. Silverstein will retain his interest, said two people with knowledge of his plan who asked not to be named because it hasn’t been made public.
The tower “has proven to be an excellent investment,” Ryan Gill, a CBRE Investors spokesman, said in the statement. “CalSTRS has a continuing good relationship with the Silverstein organization, but has decided to harvest some of the gains through the disposition of its interest in 120 Broadway.”
The New York state attorney general has seven floors in the building, according to Silverstein Properties’ website. Other tenants include Bank of New York Mellon, New York Life Insurance and the Alliance for Downtown New York.
The tower was valued at about $300 million, or $173 per rentable square foot, when CalSTRS bought its stake through CBRE Investors in 2004, according to Real Capital data.
Mr. Gill declined to say what CalSTRS originally paid for its stake.
Ricardo Duran, a CalSTRS spokesman, referred questions on the sale to CBRE Investors.
Mr. Silverstein formed a real estate partnership with CalSTRS in 2006, seeking to invest as much as $2 billion in commercial properties in metropolitan New York.