The Canada Pension Plan Investment Board has sold its stake in a New York office building for only $1, Bloomberg reported.

Built in 1913, the property is located at 360 Park Avenue South in Manhattan. According to Bloomberg, Toronto-based CPPIB sold the stake at the end of 2023 to Boston Properties, an existing partner in the investment, which agreed to assume CPPIB’s share of the project’s debt.

Singapore sovereign-wealth fund GIC Pte., also has a stake in the 20-storey building, according to Bloomberg. The three investors bought the property in 2021 with plans to modernize it.

Boston Propertied had previously announced its acquisition without identifying the seller, which had invested US$71 million and would have been required to furnish an additional US$46 million, Bloomberg reported.

The wire service also reported that CPPIB sold its 45% interest in a Santa Monica, Calif., business park to Boston Properties for US$38 million, a discount of almost 75% from the Canadian pension fund manager’s original investment.

Bloomberg cited unidentified sources. Peter Ballon, CPPIB’s global head of real estate declined the wire service’s request for comment on the deals. But he chalked them up to usual activities.

“Selling is an integral part of our investment process,” Ballon said in an emailed statement to Bloomberg. “We exit when the asset has maximized its value and we are able to redeploy proceeds into higher and better returns in other assets, sectors and markets, including office buildings.”

Photo: Metro Manhattan Office Space