Howard Atkins, senior executive vice president and CFO Wells Fargo & Co., said this week that Eastdil Secured, its real estate brokerage and investment banking company, had a record quarter with revenue and income more than doubling from the first quarter of 2007. During the quarter, Eastdil advised on more $65 billion of real estate debt and equity transactions and continued to earn fees as the advisor to Blackstone Group in its $39 billion acquisition of Equity Office Properties Trust.
Eastdil's latest deal was to act as an advisor to SL Green Realty Corp. on a joint venture acquisition with Wachovia on 1372 Broadway in New York. Under the terms of the joint venture agreement, Wachovia will own an 85% interest in the property based upon a gross aggregate price of $335 million, or $660 per square foot.
The 508,000-square-foot, 21-story office building, on Broadway between 37th and 38th Streets, was contributed to the SL Green portfolio in 1997 in connection with the company's initial public offering. SL Green's sale of its interests in 1372 Broadway will generate gains of approximately $215 million. The proceeds will be reinvested in a tax-free 1031-exchange with properties acquired through the company's merger with Reckson Associates.
This story is excerpted from CoStar Lead Street, a weekly report on future trends and plans, acquisition/disposition strategies and properties under contract.