Coca-Cola Building - $50mm profit in less than 60 days

Anyone understand how this trade happened? Saw in REA that it sold for $909mm in August and then again for $955mm in September.

Located in NYC but don't buy in the market so I'm not as in the loop as I would like to be.

*Talk about a fast flip: Just a month after it sold for $909 million, Manhattan’s Coca-Cola building has changed hands again, this time for $955 million.

A partnership including developers Michael Shvo and Bilgili Group paid that price for the 18-story property, on Fifth Avenue and 55th Street, in a deal that closed this week, according to a person with knowledge of the transaction. The sellers were Nightingale Properties and Wafra Capital Partners, said the person, who asked not to be identified discussing a private matter. The sellers’ purchase was completed in August, New York City public records show.

The new owners will keep the tower, which has a history dating to 1927, as an office-and-retail property, while enhancing its amenities and public spaces, according to Shvo’s website. Such a project would be a new direction for Shvo, whose focus has been on high-end residential developments, such as the conversion of a portion of Fifth Avenue’s Crown Building.

Deutsche Finance Group and German pension fund BVK are backing the purchase, according to the person with knowledge of the deal.

Coca-Cola Co. inherited the tower in 1983, through its purchase of Columbia Pictures. Bloomberg reported in December that the beverage company hired brokers to sell the property, which counts boutique investment bank Allen & Co. and Sandler Capital Management among its tenants. The Polo Bar by Ralph Lauren remains even after the fashion company’s decision to close its flagship store in the same building.*

 

From what I understood in the transaction, SHVO and partners bid close to $955mm to begin with, the owner of the building previously just decided (perhaps additional risk or terms they needed a quicker / cleaner close) that they went with the lower offer of $909mm. Winning bidder decided to flip and got comfortable with the associated risks that original buyer wasn't comfortable with, and turned a profit. They were all bidders in the original transaction.

 
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