Wells Hill, as real estate advisor to Goelet, LLC, a family office, was asked to assist in identifying and analyzing the strategic alternatives for its client's fee interest in the land beneath 425 Park Avenue, a 31-story, 560,000 square-foot office tower located on the full Park Avenue block-front between 55th and 56th Streets in Manhattan's Plaza District. This engagement was prompted by the relatively short maturity of the existing non-subordinated ground lease: upon expiration of the ground lease in 2015, ownership of the building would revert to the client, during a period of potentially less favorable market conditions.

Wells Hill presented Goelet with a thorough analysis and description of the options available for the property today and in the future. Based on its understanding of the near-and long-term objectives of its client, Wells Hill recommended a strategy to fully monetize the current generation's interest in the property, while allowing future generations to capitalize on the historically dynamic long-term growth in the New York City real estate market.

As a first step, Wells Hill advised the client on the acquisition of the remaining minority interest in the fee, arranged financing for such acquisition, and executed the transaction. Subsequently, after securing a number of attractive proposals from leading developers, Wells Hill was able to negotiate and close a complex ground and master lease transaction with a New York City-based developer whose proposal best suited the client's goals and objectives. The ground and master lease inserts the new lessee between the existing lessee and the fee position and delivers full control of the building to the new lessee no later than 2015. Several rent resets during the 84-year lease term provide for upward-only adjustments designed to fully capture the appreciation of the land, which the client continues to own in an unsubordinated fee position.

Goelet has engaged Wells Hill on subsequent assignments and remains an important client of the firm.