Normandy Real Estate Partners Buys 280 KSF Times Square South Asset
While much of the economic and real estate news has focused on Downtown Manhattan — specifically on the World Trade Center site — Midtown and the Times Square district are still going strong. Very strong. In the most recent development, Normandy Real Estate Partners has acquired the 280,000-square-foot, 17-story office building at 1370 Broadway for a reported $125 million.
Gavin Evans, a principal with Normandy, called the purchase an opportunity to “take advantage of the resurgence of this neighborhood and with our business plan improve the building’s profile in the market.” He went on to characterized the property, which is situated at the southeast corner of 37th Street and Broadway as “an ideal asset.”
A year-end 2011 report by services firm Cushman & Wakefield Inc. saw an increase in overall Midtown office asking rents during the entirety of last year, with prices increasing by $2.89 to reach $57.23 per square foot. But that’s not the whole story. “The largest increase in rents was recorded in the most expensive market in the nation, the Midtown Class A market, where average asking rents reached $71.22 per square foot, up 5.9 percent from a year ago,” the report noted.
In February of this year, a joint venture of Chartres Lodging Group L.L.C. and Apollo Global Real Estate Management L.P. purchased the 480-room Times Square Novotel for $212 million and planned $118 million in renovations and upgrades.
The 17-story asset is located between the Times Square and Herald Square area of Midtown.