The largest building transaction of the year in New York City (minus the Sotheby’s sale-leaseback) has closed.
CB Richard Ellis Investors officially bought a majority condo interest in 1540 Broadway today, according to a release just issued by the investment fund’s media department.
The Observer on Wednesday reported that the deal involving the 44-story, Times Square property was likely to close Thursday. Sources continue to put the price at about $355 million. CBREI’s spokeswoman declined to confirm the price, citing a confidentiality agreement — though it will surely pop up in city records in due time.
When Harry Macklowe bought the building as part of a ravenous $7 billion, seven-tower portfolio deal in 2007, he valued the building at $950 million, according to the Wall Street Journal. Mr. Macklowe was later forced to turn the portfolio over to his creditor, Deutsche Bank, which promptly put the seven trophies on the block. This is the sixth of the towers to sell (only Worldwide Plaza remains).
This is the biggest building deal this year in New York City, and one of the few large real estate transactions of any kind.
Eastdil Secured represented Deutsche Bank and mezzanine lenders in the transaction.
Read the full release below:
CB RICHARD ELLIS INVESTORS PURCHASES 1540 BROADWAY OFFICE BUILDING IN NEW YORK ON BEHALF OF INSTITUTIONAL PARTNERSHIP
Capital Improvements to Include Addition of Gym and Conference Center and Upgrades to Cafeteria for Tenants
LOS ANGELES – March 5, 2009 — CB Richard Ellis Investors, the global real estate investment management firm, has purchased a 905,533 square foot condo interest in 1540 Broadway, a 44-story Class A office building in Manhattan. This purchase was made on behalf of its CBRE Strategic Partners U.S. Value 5 fund, a commingled limited partnership real estate fund raised from institutional investors in the United States, Europe and the Middle East.
The sleek and distinctive building, which is 78 percent leased, has great visibility within the Times Square submarket, often referred to as “the crossroads” of the world. Times Square is centrally located with easy access to entertainment, shopping, restaurants, hotel amenities and transportation hubs, and has been the preferred location of corporate headquarters, business services, media/entertainment conglomerates and financial firms for many years.
CB Richard Ellis Investors is planning a capital improvement campaign that includes the addition of a gym and conference center that is open to all building tenants as well as upgrades to the cafeteria, building systems and lobby. These enhancements are part of CB Richard Ellis Investors’ signature 5-Star Worldwide service program, designed to provide services and amenities to increase tenant satisfaction. The 5-Star program combines the attributes of a concierge service, building conference center and information conduit.
“We are very selectively acquiring and providing capital to owners of high-quality office assets in the premier U.S. markets,” said Vance Maddocks, Chief Executive Officer, CB Richard Ellis Investors.