Allianz Real Estate Ends a Strong Year in the US, Including Investment in San Francisco’s Ferry Building

Allianz Real Estate, San Francisco, Seattle, Los Angeles, Normandy Real Estate Partners, L&L Holding Company, JP Morgan, Hudson Pacific Properties,
The Ferry Building, San Francisco, CA. Photo Courtesy of Hudson Pacific Propoerties.
  • Allianz Real Estate deploys $728mn in new equity transactions in 2018, including the historic Ferry Building in San Francisco, 53 State Street in Boston and the Terminal Stores in New York City.
  • Allianz Real Estate’s U.S. debt team closes $1.9bn in financing activity, including several premier properties such as 200 Occidental in Seattle, the BDO Industrial Portfolio in Ogden, Utah, and the Promenade at Downey in the Los Angeles metropolitan area.

NEW YORK, December 07, 2018 – As 2018 closes, Allianz announced another strong year of real estate growth in the United States with the debt team originating nearly 60 new transactions – a record number of closings for the calendar year – and the equity team finalizing three high profile investments. This growth in the United States reflects Allianz’s continued appetite for quality real estate in the gateway cities of the world and makes a significant contribution to its ambition to reach c.a. $110bn by the end of 2020.

“2018 again delivered strong growth and we are ending this year in a very good position,” said Christoph Donner, CEO of Allianz Real Estate of America. “This has been one of our most productive periods combining an increase in our AUM with the continued expansion of our team. This positions Allianz well to achieve future growth in line with the long-term goals of our investors.”

Today, Allianz announces two new investments for its East Coast equity portfolio: the Terminal Stores Building in New York, New York, and 53 State Street in Boston, Massachusetts.

The Terminal Stores Building is located in Manhattan’s west side submarket just south of Hudson Yards. The property is a mixed use, historic, rare building occupying a full city block. Allianz, alongside Normandy Real Estate Partners, L&L Holding Company and JP Morgan will work to optimize the building configuration and realize its full potential.

53 State Street, the 1.24 million square-foot property also known as Exchange Place, integrates the historic Boston Stock Exchange Building that was completed in 1891 and the 40-story modern glass office tower built in 1985. Allianz now owns a 49 percent interest in the property.

On the West Coast, Allianz’s equity presence grew through its $132.6mn capital contribution to the joint venture acquisition of the iconic Ferry Building in San Francisco where Allianz Real Estate acquired a 45 percent interest with Hudson Pacific Properties owning 55 percent.

Allianz‘s 2018 financing activity also further diversified its geographic footprint across the United States. High profile debt investments included 200 Occidental ($82mn) – a Class A, LEED Platinum certified office property in the heart of the Pioneer Square submarket of Seattle; BDO Industrial Portfolio ($55.8mn) – four class A industrial buildings constructed between 2016 and 2018 totalling 1.11mm sq ft located in the office/industrial master planned park known as Business Depot Ogden; and The Promenade at Downey ($85mn) – a 2015 built, 446,851 sq ft Regional Open-Air Shopping Center located in Los Angeles County. The site was formerly home to NASA as they built key components of the Saturn and Apollo space missions.

About Allianz
The Allianz Group is one of the world’s leading insurers and asset managers with more than 88 million retail and corporate customers. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing over 660 billion euros on behalf of its insurance customers while our asset managers Allianz Global Investors and PIMCO manage an additional 1.4 trillion euros of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we hold the leading position for insurers in the Dow Jones Sustainability Index. In 2017, over 140,000 employees in more than 70 countries achieved total revenue of 126 billion euros and an operating profit of 11 billion euros for the group.

About Allianz Real Estate
Allianz Real Estate is the strategic real estate organization within the Allianz Group and a leading international real estate investment and asset manager. Allianz Real Estate develops and executes worldwide tailored portfolio and investment strategies on behalf of the Allianz companies, considering direct as well as indirect investments and real estate loans. The operational management of investments and assets is currently performed in 5 regions, West Europe (Belgium, France, Italy, Luxemburg, Portugal, Spain), North & Central Europe (Austria, CEE, Germany, Ireland, Nordics), Switzerland, USA and Asia Pacific. The headquarters of Allianz Real Estate are located in Munich and Paris. Allianz Real Estate has approximately 60 billion euros assets under management.