No. of Recommendations: 9
The "buy and hold" Class A properties strategy still has adherents in the major pension funds. I can remember looking out the window of my parents' apartment in the old Ambassador hotel, watching the remarkable and unique Seagram Building being built in the mid 1950s, and dining at its Four Seasons restaurant the week it opened. Full of Travertine marble and clothed in bronze it cost a world record $38 million in 1958. It was sold in 2000 for $371 million, valued in 2005 at $705 million, almost valued in 2011 at $2 Bn, and is now apparently being refinanced for $1 Bn, implying a valuation of at least $1.3 Bn.

Sam Bronfman CEO of Seagrams had wanted to use Charles Luckman as architect, but his daughter broke that deal up and insisted he employ Mies VanderRohe and his talented acolyte Phillip Johnson.

I haven't compared that 2000 and onwards pricing with investing in Boston Properties or the office REIT index, but my best guess is you'd rather have owned the Seagram Building.
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