Sylvan Lawrence sells NYC portfolio.

In one of the largest all-cash sales of Manhattan real estate in history, the Sylvan Lawrence Company, Inc. has said the final vestiges of its once huge portfolio - four buildings comprising over 3.3 million square feet of office and retail space - to Blackacre Capital Group (Blackacre) and Taconic Investment Partners, LLC (Taconic) for $387.5 million.

The properties include one of the world's largest commercial buildings - the 2.3 million square-foot 111 Eighth Avenue in Chelsea - as well as three Downtown office towers - 100 William Street and 95 and 99 Wall Street.

Blackacre, a private real estate institutional investment firm, is affiliated with Cerberus Partners LP, a New York-based securities hedge fund. Taconic was formed in 1997 by Paul Pariser and Charles Bendit to invest in and redevelop properties in New York and other urban and suburban markets.

Charles L. Goldenberg, president and CEO of Sylvan Lawrence Company, was the broker in this landmark transaction.

"While this sale sadly represents the end of Sylvan Lawrence-owned properties, it also marks a new beginning for our company as a third-party full-service real estate brokerage and management firm," said Goldenberg, who accepted the Sylvan Lawrence presidency in 1975 and assumed the role of CEO after Mr. Lawrence's death on December 8, 1981.

At its height, the company dominated the Lower Manhattan marketplace, with the vast majority of its approximately 128 buildings located in the Financial District. At the time of his death, company holdings included over 100 properties, all of which have now been sold. Remarkably, Goldenberg has served as broker for every sale, generating in excess of $1 billion from a variety of American and foreign buyers.

The largest of the four properties said to Blackacre - 111 Eighth Avenue - perhaps best symbolizes not only the Sylvan Lawrence ownership philosophy, but its well-earned reputation as one of the city's most astute real estate investors. The company purchased the former Port Authority building in 1973 for $25 million - about $11 per square foot - and over the years has continuously upgraded and transformed the four-plus acre property into one of Manhattan's premiere multi-purpose commercial centers. Today, the unique 16-story structure, with floors as large as 75,000 square feet, is approximately 90 percent rented, with a diverse tenant roster that includes Citibank, Goldman Sachs, Cornell University, Morgan Guaranty, Prudential Securities, Sprint, Xerox, British Telecom, Roche Biomedical and many others.

Of the three Downtown office buildings, all of which are virtually 100 percent leased, two were built by the Sylvan Lawrence Company in the 1970's. The 23-story, 500,000 square-foot tower at 95 Wall Street was completed in 1970, and 100 William Street, a 21-story, 380,000 square-foot building, opened in 1973. The 25-story, 91,000 square-foot tower at 99 Wall Street, which was built in 1931, was acquired by the Lawrence interests in the early 1960's.

"We're very excited and confident about the future of our company," said Goldenberg. "We plan to be an important player in the service side of our industry."

Speaking on behalf o f the new ownership, Paul Pariser said "The availability of this significant portfolio was a propitious opportunity for the partners of Taconic and Blackacre. What was a necessary divestiture of assets by the Sylvan Lawrence family represents and opportunity of enormous proportions for the new ownership. Each Of these buildings is physically sound, architecturally desirable, geographically well-situated and adaptable to the creative enhancements our group is envisioning."

Taconic will provide asset management services on behalf of the joint ownership and oversee all operational, marketing and capital matters for the properties. Taconic has named Insignia/Edward S. Gordon Co. Inc. as exclusive leasing and managing agent for the portfolio.

"We are attuned to today's tenants - their requirements for space flexibility during periods of growth; the importance of first rate infrastructure to suit technological needs; their sophisticated tastes and the expectation of in-building amenities; and the importance of top quality service," Pariser said. "They will receive attention to these issues and more from our ownership and our fresh approach to these assets."

The purchaser was represented by the law firm of Solomon & Weinberg LLP, and financing is being provided for this transaction by Goldman, Sachs & Co. The Carlton Group served as financial advisor to the transaction.