Norges Bank and Beacon Capital Outbid Silverstein and CalSTRS for 1177 Sixth Avenue

Norges Bank Investment Management and Beacon Capital Partners have emerged as the victors in the highly competitive bidding for 1177 Sixth Avenue, a prime property in Midtown Manhattan. The two firms jointly announced their acquisition of the property for $571 million on Labor Day, leaving Silverstein Properties and the California State Teachers' Retirement System (CalSTRS) empty-handed.

The deal, which was finalized early Tuesday, saw Norges Bank taking a 95% ownership interest in the property while Beacon Capital secured the remaining stake. Beacon Capital will also be taking over management duties for the property, according to the Commercial Observer. Sources close to the deal revealed that it was an all-cash transaction.

This acquisition marks a significant win for Norges Bank and Beacon Capital, who were competing against well-established players in the real estate industry. According to industry experts, the duo's successful bid was likely due to their financial strength and strategic partnership.

"Norges Bank and Beacon Capital have proven to be formidable competitors in the real estate market, and this acquisition is a testament to their expertise and resources," said one industry insider.

The failed bid by Silverstein and CalSTRS, two prominent names in the real estate world, has left many scratching their heads. Sources speculate that the duo may have underestimated the competition, leading to their defeat.

Originally reported by The Real Deal.

https://therealdeal.com/new-york/2025/09/02/silverstein-calstrs-sell-1177-sixth-avenue-for-571m/