HNA takes financial loss on NYC office sale

HNA Group sold its stake in a Manhattan office building at a $41 million loss, according to media outlets. The buyer was Jacob Chetrit, an American real estate investor and developer and founder of the Chetrit Group, and his sons, Michael and Simon.

The sales price was estimated to be $422 million.

The Chinese conglomerate acquired 850 Third Avenue in 2016 for $463 million. HNA had owned a 90 percent interest in the 21-floor, 613,644-square-foot property with MHP Real Estate Services and ATCO Properties & Management owning the remaining minority interest; both sold their stakes.

This was the foreign investor’s remaining New York real estate asset. The transaction was part of the firm’s efforts of selling its U.S. assets, which was ordered by the Committee on Foreign Investment (CFIUS), citing national security grounds. The Wall Street Journal reported CFIUS instructed HNA to sell off its holding in 850 Third Ave. in New York.