Prudential Real Estate Investors agreed to enter an $84 million joint venture with Madison Capital to acquire 18,889 square-feet of ground floor retail space at The Astor, a historic multifamily property on New York’s Upper West Side. PREI, acting on behalf of German institutional investors in its U.S. Property Fund V, is the real estate investment management and advisory business of Prudential Financial, Inc. (NYSE: PRU).
“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,” said 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 neighborhood, 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 neighborhood 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 neighborhood. 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 20 th 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,” said Richard Wagman, managing partner of Madison Capital. Madison Capital is a private real estate investment and operating company focused on acquiring prime urban retail and mixed-use assets in New York City, Chicago and other major markets. Madison Capital currently manages over $2 billion in assets throughout the Upper East Side, Upper West Side, Fifth Avenue, Times Square, Midtown, Tribeca, Union Square, Soho, and the Gold Coast of Chicago. For further information, visit www.mcapny.com. PREI® is a leader in the global real estate investment management business, offering a broad range of investment vehicles that invest in private and public market opportunities in the United States, Europe, the Middle East, Asia, Australia and Latin America. Headquartered in Madison, N.J., the company also has offices in Atlanta, Chicago, Miami, New York, San Francisco, Frankfurt, Lisbon, London, Luxembourg, Munich, Paris, Abu Dhabi, Mexico City, Sao Paulo, Beijing, Hong Kong, Seoul, Singapore, Sydney and Tokyo. In addition, the company has representatives in Milan. PREI has gross assets under management of USD $51 billion ($38.7 billion net), as of June 30, 2013. For more information, visit http://www.prei.com. Prudential Financial, Inc. (NYSE:PRU), a financial services leader with more than $1 trillion of assets under management as of September 30, 2013, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit www.news.prudential.com.