The Pillsbury Winthrop Shaw Pittman real estate group in New York recently closed a $23 million purchase of the ground leasehold for 118 10th Avenue in Manhattan on behalf of Klövern AB, a publicly traded Swedish real estate company. The acquisition, which closed on May 31, 2019, marks the third New York City real estate transaction the team has successfully completed for Klövern in the past 15 months.
The three transactions mark Klövern’s inaugural property acquisitions in the U.S. The just-completed deal for 118 10th Avenue follows comes on the heels of the developer’s $36 million acquisition of 322-326 7th Avenue in July 2018 and a $16 million ground leasehold for 1241 Broadway effected in March 2018. The three development transactions are joint ventures with the New York City developer GDSNY.
The property at 118 10th Avenue is planned for development into a 10-story office building near The High Line; a state-of-the-art 22-story office building is under construction at 1241 Broadway; and 322-326 7th Avenue—opposite the Fashion Institute of Technology—is being converted into a LEED Silver-certified, mixed-use development.
The New York-based Real Estate team serving as U.S. real estate counsel to Klövern is led by partner Andrew Weiner and includes partner Caroline Harcourt, associates Christian Scarlett and Rebecca Elizabeth Ross and real estate paralegal Jasmine Gurreri. Tax partner Harsha Reddy provided cross-border tax guidance for the structuring of Klövern’s U.S. real estate investments.
With a clear emphasis on sustainability in its development projects, Klövern’s real estate portfolio now consists of more than 400 properties around the world and is valued at nearly $6 billion.
The Pillsbury real estate group is a multi-state, multi-national platform with concentrations in New York, Washington D.C./Northern Virginia, Florida, Texas, Northern and Southern California and London. It represents US based clients, and, in New York alone, is currently representing real estate clients based in Hong Kong and elsewhere in the PRC, Canada, Japan, Korea, France, Singapore, and the Middle East.