A group of investors led by Isaac Chetrit and Ray Yadidi acquired the office tower at 1412 Broadway in New York City from Harbor Group International (HGI) for $250 million, or about $583 per square foot.
Originally built in 1926, the 24-story, 428,626-square-foot office building sits on half an acre in the Penn Plaza / Garment District submarket of Bryant Park / Times Square, at the northeast corner of W. 39th Street in Manhattan. The property is located one block from the Times Square subway and is close to Penn Station, Grand Central Station, and the Port Authority. It features on-site banking, concierge, 24/7 access, and a restaurant.
At the time of sale, the asset was 96 percent leased, anchored by Outerstuff Ltd., Jones Apparel Group, and Escada.
HGI acquired the building
from MHP Real Estate Services LLC in December 2010 for $150 million, or $350 per square foot, according to CoStar data. It then invested more than $10 million in renovations and upgrades to the lobby, common areas, elevators, and retail storefronts. See CoStar COMPS #2013829.
"Harbor Group did a tremendous job repositioning the asset to benefit from the escalating demand in the area from fashion and TAMI tenants," said Darcy Stacom, vice chairman and partner at CBRE Group, Inc.
Darcy Stacom, Bill Shanahan, Jeff Dunne, and Paul Gillen with CBRE's institutional properties group represented the seller. The buyer has retained CBRE to handle leasing at the building.
Please see CoStar COMPS #3066975 for additional information on this transaction.