EXCLUSIVE: Moinian Takes Zeus Portfolio for $270M

NEW YORK CITY-The Moinian Group has acquired nearly 600,000 sf of office and retail space at 509, 535 and 545 Fifth Ave. for an aggregate price of $270 million. The three pre-war buildings, which are known as the Zeus portfolio, were purchased from institutional owners Emmes and Apollo.

“This stretch of Fifth Avenue has never been more attractive to both office tenants and high-end retailers, and our investment in this entire block insures the continued enhancement of these outstanding properties,” says Joseph Moinian, CEO of the Moinian Group. Because the firm already owns 530 Fifth Ave. directly across the street, it now can lay claim to the entire block front of Fifth Avenue between 44th and 45th streets. The portfolio is located right next to Grand Central Station and steps from Bryant Park.

The interconnected buildings at 535 and 545 Fifth Ave. occupy a full block front and are 90% leased. Tenants include Ascent Media, the International Federation of Accountants, the Switzer Group and Ask Jeeves.com. On the retail front there’s Barami, Cohen’s Fashion Optical, Cinema Café, Michael C. Fina and Starbucks. The three buildings have recently undergone $42 million in capital improvements. Moinian plans to further enhance them for commercial office and retail use. Currently, there are a limited number of full-floor opportunities, primarily at the 36-story property at 535 Fifth Ave., company officials say.

Richard Baxter of Cushman & Wakefield represented the seller. Moinian has named CB Richard Ellis as exclusive leasing agent for the properties, with Keith Caggiano and Jon Zuckerman leading the assignment.

Moinian Group currently has a portfolio totaling more than 20 million sf of office, residential, retail and hotel properties throughout the US and abroad. Approximately 13 million sf of that total is here in Manhattan.