Another Big One: Vornado Sells Manhattan’s 1740 Broadway for $605M
- Dec 23, 2014
Manhattan continues to lead the pack as the town with the biggest big-ticket office transactions in the U.S. as the 600,000-square-foot building at 1740 Broadway fetches $605 million, or roughly $1,000 per square foot. Vornado Realty Trust was the seller. Blackstone Group L.P. is the new owner
Built in 1950 and comprehensively renovated in 2007, 1740 Broadway is a fully occupied high-rise that is fully leased, right down to its 20,000 square feet of ground-level retail space. Vornado walked away from the sale of the 26-story-story tower with a tax gain of $484 million, which the company will defer in a like-kind exchange involving its $700 million joint venture acquisition of the retail condominium of the St. Regis Hotel and the adjacent retail townhouse, which total approximately 25,000 square feet.
Commercial real estate services firm CBRE Group marketed 1740 Broadway on Vornado’s behalf, and likely found more than a few interested investors. In terms of U.S. office investment sales, New York City is fairly firmly placed in the number-one position. Manhattan has headed the sales list–in square footage and price tag–all year. In the third quarter, three of the top five office trades involved Manhattan assets, according to a report by Real Capital Analytics, and the trend appears to be continuing in the fourth quarter.
Earlier this month, the Bank of China Ltd. reportedly agreed to acquire the 470,000-square-foot 7 Bryant Park from Hines and J.P. Morgan Chase for approximately $600 million. And in November, news emerged that Callahan Capital Partners and Canada’s Ivanhoe Cambridge had committed to buying the 1.2 million-square-foot skyscraper at 1095 Avenue of the Americas from Blackstone.