Macquarie’s GLL Real Estate signs 99-year ground lease valued at $365M with Mactaggart family for 589 Fifth Ave.

Macquarie Infrastructure and Real Assets’s GLL Real Estate Partners through the entity 589 LGA LLC signed a 99-year ground lease with London-based Mactaggart Family and Partners valued at $365.2 million for 589 Fifth Avenue in Grand Central. The deal closed on September 30, 2019, and was recorded on October 22, 2019. The transaction consists of 1 parcel, including the tax class office building with commercial with seven to 19 stories (O6). The property is 156,319 square feet.
The average lease price per square foot is $2,336.
The estimated cap rate is 2.4%
The ground lease value of $365.2 million is about 10 percent below the $400 million high-end potential lease value reported by Real Estate Alert in early 2018, when Cushman & Wakefield’s listing for the lease was disclosed. The new lease, signed on October 8, follows up a 40-year lease inked in 2005. Fast-fashion retailer H&M occupies the entire retail space. The Australian Macquarie Group acquired GLL, a German-based institutional investment company, in 2018.
The DOB issued a major alteration (A1) initial temporary certificate of occupancy for the building on January 24, 2017.
Over the past five years, there have been 21 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 21 renovation/alteration projects (A2) applied for with a total estimated value of $4,178,737.
Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link