Munich Re pays $506.2M to buy out Mutual of America at 302 Park in Midtown East

Munich Re through the entity 320 Park Avenue Associates LLC paid $506.2 million through an entity level transaction to Mutual of America Life Insurance Company through the entity Mutual Of America Real Estate Holdings LLC for the office building (O4) at 320 Park Avenue in Midtown East, Manhattan.
The New York Post reported Munich Re previously owned 25 percent, therefore this transaction values the entire building at about $675 million.
The deal closed on December 23, 2024 and was recorded on January 7, 2025. The property has 656,436 square feet of built space according to a PincusCo analysis of city data. The $675 million valuation per built square foot is $1,028 per the PincusCo analysis, using actual square feet, not the building with loss factor, which is currently measured at about 760,000 square feet, yielding a price per foot of $888 per foot. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Munich Re had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Mutual of America Life Insurance Company had not purchased any other properties and had not sold any properties over the same time period.

The property

The office building in Midtown East has 656,436 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 200 feet and is 155 feet deep with a total lot size of 30,625 square feet. The lot is irregular. The zoning is C5-3 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received one DOB violation and $15,170 in OATH penalties in the last year.

Development

On the lot, there is one active major alteration construction project, 121208807, for a portion of the building. The project was submitted by David Steinthal with plans filed October 13, 2020 and permitted February 11, 2021.

The neighborhood

In Midtown East, The majority, or 81 percent of the 62.6 million square feet of commercial built space are office buildings, with hotel buildings next occupying 7 percent of the space. In sales, Midtown East has the 3rd highest sale turnover among other neighborhoods in the city with $2.3 billion in sales volume in the last two years. For development, Midtown East is the 2nd most active neighborhood among other neighborhoods. It had 18.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 29 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of three of the five commercial properties representing 866,090 square feet of the 1,596,981 square feet. The identified owner is Roman Catholic Church.
There are no active new building construction projects on this tax block.

The majority, or 52 percent of the 1.6 million square feet of built space are hotel buildings, with office buildings next occupying 46 percent of the space.

The buyer

The PincusCo database currently indicates that Munich Re owned at least three commercial properties in New York City with 890,101 square feet and a city-determined market value of $347.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 82 percent of the 890,101 square feet of built space are office properties, with specialty properties next occupying 18 percent of the space. The bulk, or 82 percent of the built space, is in Manhattan, with Queens next at 18 percent of the space.

Direct link to Acris document. link