$1B Health Care Fund
Commercial Observer
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Investment giant KKR is partnering with a real estate investment trust to pour up to $1 billion into health care properties. The first 12 the fund is investing in have a total value of $382.5 million. More details this way, along with the rundown on what will surely end up one of the biggest office leases in the U.S. for 2024, a nearly 1 million-square-foot renewal in Manhattan.
— Tom Acitelli, Deputy Editor
KKR Partners With Healthcare Realty Trust on $1B Venture
KKR just keeps getting bigger — and maybe even healthier, too — with its assets. The massive real estate investment firm — holding more than half a trillion dollars in assets — announced Monday it has formed a joint venture fund with Healthcare Realty Trust, a publicly traded real estate investment trust, committing $600 million of its own money to acquire or stabilize commercial real estate assets in the health care sector. The new fund is projected to eventually reach a value of more than $1 billion. As part of the joint venture, Healthcare Realty Trust will seed the new fund with 12 commercial health care properties valued at $382.5 million, of which KKR will make an equity contribution equal to 80 percent of the value of the properties.
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Bloomberg Renews Nearly 1M-SF Lease at 731 Lexington Avenue
Bloomberg signed an 11-year renewal on its 946,815-square-foot office at 731 Lexington Avenue, a Midtown office tower owned by the Alexander’s real estate investment trust. The current lease expires in 2029 and this gives Bloomberg a place in the building, where it has leased space since at least 2004, until 2040, according to Vornado Realty Trust, which manages and leases the property. Vornado declined to disclose the asking rent or names of any brokers on the deal. Average asking rent in Manhattan in the first quarter of 2024 was $87.44 per square foot, according to a report from Avison Young.
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