China Investment Corp., a sovereign wealth fund with more than $700 billion under management, purchased a 49% stake 1 New York Plaza from Brookfield Office Properties, which will retain a controlling stake in the downtown New York office tower.
The deal values the 50-story office tower at about $1.4 billion, meaning CIC paid about $700 million for its interest in the property.
Darcy Stacom, a sales broker at CBRE, arranged the sale for Brookfield.
The sale gives CIC a passive stake in the 2.6 million-square-foot property, whose largest tenant is the prominent law firm Fried Frank. During a quarterly earnings call earlier this month, Brookfield announced it had sold a minority interest in 1 New York Plaza, but did not disclose the identity of the buyer. Brookfield will continue to handle the office tower's leasing and management.
The deal is the second in recent months in which Brookfield has sold a stake in a Manhattan property. Late last year, the company sold a 44% interest in Manhattan West, an $8.6 billion mixed-use complex Brookfield is developing west of Penn Station, to the Qatar Investment Authority.