Norfolk, VA-based Harbor Group International (HGI) has acquired 1412 Broadway in the heart of Midtown Manhattan for $150 million, or $375 per square foot, from Murray Hill Properties, LLC.
HGI plans to invest an additional $10 million in capital and tenant improvements for the 24-story, 415,135-square-foot office tower located near Times Square in New York City. The property was built in 1926, renovated in 2000, and recently underwent a multi-million dollar repositioning program including electrical, elevator and mechanical system upgrades initiated by the seller.
The Fashion Gallery Building is currently 84 percent occupied, with fashion giants Jones New York and Escada as tenants.
The acquisition is HGI's second in the New York market this year. The firm acquired 4 New York Plaza in January for $107 million, or $99 per square foot, according to CoStar data. The 1.1-million-square-foot property is now 95 percent occupied by tenants including New York Daily News and former owner, JP Morgan Chase.
"1412 Broadway presented an excellent opportunity to acquire a core office building in Manhattan’s Times Square submarket," says Jordan E. Slone, Chairman and CEO of Harbor Group International. "With little commercial development expected in the immediate future, the building will continue to appeal to a wide range of tenants and benefit from positive rental rate trends in a rapidly improving New York office market."
Please see CoStar COMPS #2013829 for additional information on this transaction.