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CBRE Investors Acquires Majority Stake in 1540 Broadway

Investment Management Firm Takes 905,533 SF at Former Macklowe Tower for $355M
March 6, 2009
CB Richard Ellis Investors has acquired a 75 percent stake in 1540 Broadway for $355 million, or $392 per square foot.

The sale is the largest transaction in New York this year.

The 44-story, 1.2 million-square-foot tower was part of the seven building, $7 billion portfolio that Harry Macklowe acquired in 2007, and famously had to turn over to Deutsche Bank last year. 1540 Broadway is the sixth tower to find a new owner, leaving only Worldwide Plaza in limbo.

Wayne Maggin, Adam Spies and Douglas Harmon with Eastdil Secured handled negotiations for the seller.

The office skyscraper delivered in 1989 in Times Square. 1540 Broadway is 78 percent leased to tenants including Viacom, Pillsbury Winthrop Shaw Pittman LLP, Planet Hollywood and the Virgin Megastore.

CBRE Investors purchased the 905,533-square-foot interest on behalf of its CBRE Strategic Partners U.S. Value 5 fund.

"We are very selectively acquiring and providing capital to owners of high-quality office assets in the premier U.S. markets," said CBRE Investors CEO Vance Maddocks.

The investment management firm is planning improvements to the building, including a gym and a conference center, as well as upgrades to the operating systems, lobby and cafeteria.

At the height of the commercial real estate boom in 2007, more than 25 Manhattan office buildings sold for more than $500 million apiece, with several exceeding $1 billion. From the beginning of 2008 to today, only six buildings have reached into that price range, according to CoStar information.

Please refer to CoStar COMPS #1663353 for further details on the 1540 Broadway acquisition.

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