Norges Bank, Beacon Capital pay $572.3M to Silverstein, CalSTRS for office in Midtown West, $372M borrowed

Norges Bank Investment Management and Beacon Capital Partners through the entity 1177 Property LLC paid $572.3 million to Silverstein Properties and CalSTRS through the entity 1177 Avenue of the Americas Acquisition LLC for the office building (O4) at 1177 Sixth Avenue in Midtown West, Manhattan. The expected use is cash flowing.
The deal closed on September 15, 2025 and was recorded on October 10, 2025. The property has 912,955 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $626 per the PincusCo analysis. (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.)
The signatory for Silverstein Properties and CalSTRS was Michael Levy . The signatory for Norges Bank Investment Management and Beacon Capital Partners was Jill R. Hyde . The contract date was August 28, 2025.

Norges Bank Investment Management acquired 95% valued at $542.45 million while Beacon acquired 5% valued at $28.55 million and Beacon will manage the asset, according to a press release.  The Commercial Observer also reported on the transaction.

The Norges Bank and Beacon Capital purchase was financed with a $371.99 million loan provided by an entity in care of Beacon Capital Partners, whose general partner, BCSP 9 1177 GP LLC is an entity that appears to be an affiliate of a Beacon Capital fund, Beacon Capital Strategic Partners 9. According to IPE Real Assets, CalSTRS invested $150 million in fund 9.

A spokesperson for Norges Bank said in an email, “The loan was provided through the entity 1177 JV L.P., a joint venture partnership between NBIM and Beacon Capital Partners. Beacon is further confirmed as the general partner of the JV.”

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Norges Bank Investment Management had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Silverstein Properties purchased 131 properties in one transaction for a total of $672 million and had not sold any properties over the same time period. The 912,955-square-foot property generated revenue of $65.4 million or $72 per square foot, according to the most recent income and expense figures.

The property

The office building in Midtown West has 912,955 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 200 feet and is 200 feet deep with a total lot size of 32,134 square feet. The lot is irregular. The zoning is C6-6 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $378 million. Norges Bank Investment Management|Beacon Capital Partners on 2025-09-15 00:00:00 bought a loan with an original principal of from signed by , secured by 1177 Avenue Of The Amer, when owned by Silverstein Properties|CalSTRS.

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 $7,200 in OATH penalties in the last year.

Development

On the lot, there is one active major alteration construction project, M01133369, for a 912,955 square-foot B building. The project was submitted by Bill Dacunto with plans filed January 22, 2025 and permitted August 19, 2025.

The neighborhood

In Midtown West, The majority, or 75 percent of the 75.9 million square feet of commercial built space are office buildings, with hotel buildings next occupying 14 percent of the space. In sales, Midtown West has the 3rd highest sale turnover among other neighborhoods in the city with $2.2 billion in sales volume in the last two years. For development, Midtown West is the 2nd most active neighborhood among other neighborhoods. It had 39.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 52 percent of the neighborhood’s built space. There were two 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 10 of the 21 commercial properties representing 1,506,902 square feet of the 1,761,684 square feet. The largest owner is Silverstein Properties, followed by Abu Dhabi Investment Authority and then Chartres Lodging Group.
There are no active new building construction projects on this tax block.

The majority, or 59 percent of the 1.8 million square feet of built space are office buildings, with hotel buildings next occupying 31 percent of the space.

The seller

The PincusCo database currently indicates that Silverstein Properties owned at least 10 commercial properties with 1,691 residential units in New York City with 13,389,014 square feet and a city-determined market value of $4.6 billion. (Market value is typically about 50% of actual value.) The portfolio has $3.9 billion in debt, with top three lenders as New York Liberty Development Corporation, Wells Fargo, and Bank of New York Mellon as trustee respectively. Within the portfolio, the bulk, or 90 percent of the 13,389,014 square feet of built space are office properties, with elevator properties next occupying 9 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Beacon Capital Partners owned at least three commercial properties in New York City with 336,554 square feet and a city-determined market value of $81.9 million. (Market value is typically about 50% of actual value.) The portfolio has $609.6 million in debt, borrowed from TPG Real Estate Partners. Within the portfolio, all identified are office properties. They are all located in Manhattan.
The PincusCo database currently indicates that Norges Bank Investment Management owned at least one commercial property in New York City with 45,136 square feet and a city-determined market value of $12.4 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single office property. It is located in Manhattan.

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