German Estate Group buys Frankfurt office tower for €220m

German Estate Group has acquired the former Commerzbank Skyscraper in Frankfurt for €220 million ($234 million) from Commerzbank.

The office tower, which will undergo renovations, consists of 25 full stories, a four-story base building and a total of 75 parking spaces.

Approximately €3 billion ($3.4 billion) was invested in Frankfurt’s commercial real estate in the first nine months of 2016, down 24 percent year-over-year, according to Colliers. The Frankfurt investment market continues to gain momentum despite the fact transaction volume in the first three quarters of the year was lower than 2015’s record result. The drop is not a sign of dwindling demand but can instead be attributed to very high 2015 results and the further decrease in the availability of attractive investment assets.

Office properties dominated the transaction market in the first three quarters of 2016, accounting for around 90 percent of transaction volume.