New York Retirement Fund, Taconic Investment buy 450 Park Avenue.

The New York State Common Retirement Fund and Taconic Investment Partners LLC have formed a joint venture to own and operate 450 Park Ave., a class "A" office building located on the southwest corner of 57th St.

The $158 million property, which was designed by Emory Roth & Sons and built in 1971, is 96% leased. The seller of the building is 450 Park Avenue Associates LLC, the original developers.

Taconic Management Company LLC has been appointed property manager of the 33-story building and has engaged Insignia/ESG, Inc. as the exclusive leasing agent.

"The Fund has been an investor in real estate and in New York," said H. Carl McCall, sole trustee of the New York State Common Retirement Fund. "With this latest acquisition of a premier office building, we continue our investment program on behalf of the members of the pension systems who depend on a reliable income. Real estate investment, and particularly the income and appreciation from 450 Park Ave., will serve our members and beneficiaries for many years to come."

"This was a unique opportunity for us to acquire an ideally located, prime asset that is nearly fully leased at average rental rates significantly below current market, with near-term potential lease rollovers," said Paul E. Pariser, co-founder and principal of Taconic.

The new owners plan to invest more than $12 million in the property for capital improvements, modernizing all building systems and renovating the building lobby and plaza, as well as all tenant areas.

"Our plan is to do everything necessary to make 450 Park Avenue one of the premier buildings in Midtown," said Charles R. Bendit, co-founder and principal of Taconic.

Clarion Partners advised the New York Common Retirement Fund in the transaction.