Munich Re announced it has acquired full ownership of the 320 Park Avenue office tower in the prestigious Plaza District in New York City from Mutual of America. In 2021, asset manager MEAG secured a 25% stake in the Class A office tower on behalf of Munich Re in a joint venture with Mutual of America.
A JLL cross-platform team consisting of Vice Chairmen Frank Doyle and David Kleiner, and Senior Managing Director David Giancola arranged the majority interest sale to Munich Re in an off-market transaction. Munich Re was advised by MEAG. Mutual of America was advised by David Drewes of Willkie Farr & Gallagher LLP.
JLL is exclusive leasing agent for the property, which is fully occupied. The building recently has been modernized over an area of +350,000 SF, almost half of the total available office space.
Dr. Stefan Haas, a member of MEAG’s Board of Management and Global Head of Real Estate: “We are delighted having completely secured a first-class property like 320 Park Ave. to our US real estate portfolio in an off-market deal. The office market in New York currently offers very good opportunities, especially for investors with high equity. 320 Park Ave. is also a prime example of a top office property in an excellent location that has proven its resilience even in difficult times. By taking over the Asset Management, our local MEAG colleagues in NYC were able to further enhance the property and increase the rental success even in difficult times of the past two years.”
Stephen Rich, Chairman, President and CEO of Mutual of America Financial Group, said, “The sale of Mutual of America’s remaining interest in 320 Park Avenue is part of the company’s long-term strategy to deploy capital toward growth opportunities and expand retirement services for the benefit of our customers. Given the strength of the real estate market along this Park Avenue corridor, it was a good time to move forward on our plan with Munich Re, who has been an excellent partner in our co-ownership of the building the past three years. We look forward to having this historic building remain as our headquarters for decades to come.”
320 Park Ave. is a prime address, and serves as the NY headquarter for a number of financial institutions such as Mutual of America and Raymond James. A recently completed USD 35 million renovation renewed the lobby and set up a café on the ground floor, a new gym and over 25,000 square feet of new indoor and outdoor space. The 16th floor features an exclusive restaurant with an outdoor terrace overlooking Park Avenue. The tower has been awarded a Gold LEED certificate by the U.S. Green Building Council (USGBC).
The transaction is the largest office sale in New York City in 2024. According to JLL, the top of the market continues to tighten as new supply remains limited. Direct vacancy in trophy properties fell 40 basis points from Q2 to 8.4% in the third quarter. This helped balance increased vacancies elsewhere, with overall vacancy rising slightly by nine basis points to 16.8%.
MEAG is the asset manager of Munich Re Group. With representations in Europe, Asia and North America, MEAG also offers its extensive expertise to institutional investors and private clients from outside the Group. MEAG currently manages assets to the value of around €354 billion, including €63 billion for private and other institutional investors.
Mutual of America Financial Group is the trade name used by Mutual of America Life Insurance Company, a leading provider of retirement services and investments to employers, employees and individuals. The company provides high-quality, innovative products and services at a competitive price, along with outstanding personalized service, to help its customers build and preserve assets for a financially secure future. The company’s mission is built upon integrity, prudence, reliability, excellence and social responsibility—values which have guided the company since 1945 and continue to serve them and their customers well. For more information, visit mutualofamerica.com.
