Union Investment, in partnership with Nuveen Real Estate, has completed the sale of 636 Sixth Avenue, a prime retail property located in Manhattan’s Flatiron District. The property was sold to a strategic investor, who plans to redesign both the retail space and the office floors above. Financial terms of the deal have not been disclosed.
Union Investment initially acquired the 1,700-square-meter retail building in 2016 through a joint venture with Nuveen Real Estate, formerly known as TH Real Estate. The acquisition was part of a larger entry into the US retail market under Union Investment’s open-ended real estate fund, UniImmo: Global.
This sale marks a successful exit for the Hamburg-based investment firm in the highly competitive Prime Urban Retail category, which originally involved four retail properties across the US. Union Investment has since expanded its US retail portfolio with additional acquisitions in Chicago and New York.
Adam Irányi, head of Investment Management Global at Union Investment, acknowledged the complexity of the current US investment landscape, stating: “The investment environment in the US is very challenging right now. Securing this exit alongside our partner Nuveen is a significant achievement, delivering value for our global fund.”
UniImmo: Global retains a 49% stake in the other three properties from the joint venture, located in prime retail locations in New York, San Francisco, and Philadelphia. Looking ahead, Union Investment plans to grow its US retail portfolio, with a focus on high street and convenience retail, while also expanding in resilient asset classes such as logistics and multi-family developments.
