Max Capital acquires $744m portfolio.

Max Capital Management Corp., one of the nation's largest owners and operators of commercial real estate, signed a binding contract to acquire a $744 million portfolio of office buildings totaling 5 million SF of premiere space in Midtown Manhattan, Chicago and Detroit. The transaction, which is scheduled to close on Oct. 1 would be one of the largest commercial real estate acquisitions this year.

Max Capital's chairman, Adam Hochfelder, and president Anthony Westreich made the announcement today, just weeks after pledging to grow the company's existing 7 million-SF portfolio with acquisitions in important CBDs across the United States.

Included in the portfolio, which will be acquired from Credit Suisse First Boston, is the remaining 50% stake in 350 Madison Ave. and 1440 Broadway, which Max Capital had owned in partnership with the investment bank. Outside New York, the portfolio includes outstanding trophy properties such as One N. LaSalle in Chicago, a 49-story landmark office tower, and 150 West Jefferson in Detroit, a Class A, glass and steel, 25-story office tower which is 95% leased and is known as the best building in Detroit.

Hochfelder said, "This acquisition is a perfect fit for Max Capital and illustrates our ability to quickly capitalize on prime acquisition opportunities."

Max Capital invested more than $50 million in capital upgrades and leasing to execute its strategy for improving 1440 Broadway since it acquired the property in partnership with Credit Suisse First Boston in 1998. Max Capital also recently completed the $55 million redevelopment of 350 Madison Ave., the 25-story, Class-A office tower, including the transformation of the asset from singletenant use (Conde Nast Publications) to multi-tenant occupancy (92% leased).

"We will continue to seek outstanding assets in key cities throughout the U.S. by identifying opportunities, closing and seeing through the ultimate enhancement of the properties," said Hochfelder.

Westreich said, "We are thrilled to fortify Max Capital's portfolio with such important properties, and have the opportunity to put our hands-on property and asset management skills to work at maintaining their excellence," he added. "We are also pleased that we will take sole ownership of 350 Madison and 1440 Broadway."

In addition to the stake in the two Manhattan office buildings and noted trophy buildings One N. LaSalle (490,500 SF) and 150 West Jefferson Drive (492,527 SF), the portfolio also includes: One North Dearbom (17-story Class B office building consisting of 923,454 SF) in between Chicago's Financial District and Michigan Avenue; 360 N. Michigan, a Class A office building that is 95% rented (260,822 SF.) in Chicago; First National Building (25-story Class B office building consisting of 751,317 SF) in Detroit; and Penobscot Building (a three-building Class B office complex consisting of 930,858 SF) which was awarded the "Detroit Area Art Deco Society Award."