M
unich Re, the world's largest reinsurance company, has made a significant move in the sluggish office-building sale market by purchasing its joint-venture partner Mutual of America's stake in 320 Park Avenue. The deal values the fully-leased tower at around $700 million, or approximately $900 per square foot.

    The 760,000-square-foot building, located between East 50th and 51st streets, is occupied by Mutual of America, Raymond James, and a few other financial firms. Munich Re had previously owned 25% of the property through its asset manager MEAG, which invested $40 million in upgrades since joining the partnership in 2021.

    The purchase reflects the strength of Park Avenue north of 42nd Street, where most buildings are fully leased to prime tenants. The deal is one of the largest office purchases in the city this year, with market values continuing to slump after the pandemic.

    A brokerage source noted that Munich Re has made a significant investment in the city, putting over $1 billion into Manhattan properties in less than six months, including its recent purchase of 330 Madison Avenue. The fully-leased building's tenants include Mutual of America and Raymond James, making it an attractive asset for top tenants.

    The deal was facilitated by JLL, which represented Mutual of America, and MEAG, which advised Munich Re. According to JLL vice-chairman Frank Doyle, 320 Park Avenue is a prime example of the standout Class-A office properties that are overperforming in the current market due to its superior location, premier amenities, and best-in-class ownership.