Perella Weinberg Partners Asset Based Value Strategy, a leading alternative asset management strategy and a unit of Perella Weinberg Partners, and Madison Marquette, a leading commercial real estate investment and operating company, today announced the acquisition of The BankNote Building, a 410,000 square-foot office complex in Bronx, New York.
Perella Weinberg Partners Asset Based Value Strategy and Madison Marquette purchased the building as part of their joint venture. The joint venture focuses on strong cash flowing investments in high-density urban locations across the United States. Affiliates of Madison Marquette manage all properties acquired by the joint venture. This is the second property to be acquired by the joint venture; its first acquisition was The Center Building, located in Long Island City, in 2012.
David Schiff, Partner at Perella Weinberg Partners and Portfolio Manager of the Asset Based Value Strategy, stated, “This iconic New York landmark fits perfectly into our strategy of acquiring financially compelling properties, with high-quality tenants in densely populated urban locations. Our joint venture with Madison Marquette has delivered exceptional value and we look forward to continuing to build on our partnership while participating in the development of communities.”
“Madison Marquette has spent more than two decades successfully creating exciting and transformative mixed-use and retail real estate properties,” said Amer Hammour, Chairman of Madison Marquette. “We believe the Bronx is poised for a historic period of growth, and we are pleased to be participating in its continued development. Perella Weinberg Partners Asset Based Value Strategy has been a wonderful partner since the launch of our joint venture and we look forward to working with them on this latest addition to the portfolio.”
Billy Jacobs, member of Perella Weinberg Partners Asset Based Value Strategy, said, “We’re excited to be extending our joint venture to Bronx and look forward to contributing to the renaissance of Hunts Point.”
Located at 1201 Lafayette Avenue in Bronx, New York, The BankNote Building is an architecturally significant landmark originally constructed in 1909. It is the former home of The American BankNote Company, which printed currency, stamps and stock certificates on the premises.
Today, the building has a variety of occupants, including government, civic, and private sector tenants, office tenants, not-for-profit organizations, and the arts community. The building recently underwent an extensive $33 million capital improvement program that included upgrading infrastructure and common areas, enhancing security, and improving circulation. The BankNote Building is currently over 90% leased and the complex includes an adjacent retail building that fronts an outdoor plaza. The building’s largest tenant is the New York City Human Resources Administration, which leases over 50% of the building and recently signed a new 20-year lease.
“New York’s Department of City Planning sees the Bronx entering a period of growth at levels it has not seen since the 1940s,” said David Brainerd, Chief Investment Officer of Madison Marquette. “Buying an established New York City landmark in an area that is gaining such tremendous momentum is a unique opportunity that we’re very excited about.”
Counsel for the joint venture was Fried, Frank, Harris, Shriver & Jacobson LLP.
About Perella Weinberg Partners Asset Based Value Strategy
Perella Weinberg Partners Asset Based Value Strategy is a leading post-financial crisis provider of U.S. specialty finance solutions. Since inception in 2008, the strategy has grown to manage approximately $2.1 billion in equity capital through a number of different investment vehicles. Perella Weinberg Partners Asset Based Value Strategy can deliver significant capital, technical expertise and infrastructure in a wide range of asset classes and structures, including both real and financial assets. Capital for the strategy is contributed by, among others, a diversified group of institutional investors who seek to invest in compelling opportunities at favorable valuations.
About Perella Weinberg Partners
Perella Weinberg Partners is a leading independent, client-focused financial services firm providing advisory and asset management services to a broad, global client base, including corporations, institutions and governments. The Advisory business advises clients on mergers, acquisitions, defense advisory, financial restructuring, private capital raising, and pension matters. The Asset Management business includes a suite of hedge fund strategies, private investment funds (including real estate) and outsourced CIO solutions. Together with its affiliates, the Asset Management business has capital commitments and managed assets of approximately $11.2 billion. Founded in 2006 and with more than 400 employees, Perella Weinberg Partners maintains offices in New York, London, Abu Dhabi, Denver, Dubai, and San Francisco. For more information on Perella Weinberg Partners, please visit here.
About Madison Marquette
Madison Marquette is a private real estate investment and operating company and a member of a global investment firm Capital Guidance, headquartered in Geneva, Switzerland. Founded in 1992, the firm employs a proven repositioning and redevelopment strategy to create value in infill and mixed-use assets in major urban gateway markets throughout the United States. Madison Marquette enhances returns while mitigating risk by directly controlling and managing the execution of its investment strategies. With more than 230 employees, Madison Marquette covers major U.S. markets through its offices in Washington, DC, San Francisco, Los Angeles, Seattle, San Diego, New York, Philadelphia, Dallas, and Fort Lauderdale. For more information on Madison Marquette, visit the company website here.
