Global Holdings Grabs Manhattan Trophy Tower for $565M
- Nov 09, 2016
New York—Global Holdings Management Group, run by Israeli billionaire Eyal Ofer, has closed on its $565 million purchase of 1250 Broadway, a 39-story, LEED Gold–certified office tower in Manhattan.
Global Holdings acquired the 645,977-square-foot building from Jamestown with the aid of a $410 million loan from HSBC Bank. Jamestown and Murray Hill Properties had purchased the office tower from SL Green Realty in 2008 for $310 million. SL Green had owned the tower since 1999, when it paid $93 million for it. In 2011, the owners completed a renovation of the tower to attract more technology tenants. Jamestown purchased MHP’s shares in 2013 to be the sole owner.
The building, constructed in 1969 and located at the southeast corner of West 32nd Street in the Penn Plaza/Garment District submarket, also has 8,000 square feet of ground-floor retail. The glass-and-steel tower is the only trophy office tower in the neighborhood and takes up the entire block front on Broadway between 32nd and 31st streets.
It was nearly fully occupied at the time of the sale but its largest tenant, the Visiting Nurse Service of New York, will vacate about 320,000 square feet by December 2018. SL Green, owner of the News Building at 220 E. 42nd St., announced in September the VNSNY was taking 308,115 square feet at its property.
Several New York media outlets, including the New York Post, reported in late June that the property was in contract to be sold to Global Holdings. Investment brokers Douglas Harmon, Adam Spies and Kevin Donner of Eastdil Secured marketed the property for Jamestown and Murray Hill Properties, according to the Post.
Global Holdings is an international alliance of real estate asset management and investment advisory companies operating across the United States, United Kingdom and Europe. It invests in special properties in gateway cities, including New York City, London and Amsterdam. The firm, which manages at least 6 million square feet of office space in the U.S., owns several office and residential properties in New York City, including 15 Central Park West, 50 United Nations Plaza, 875 Third Ave. and 120 Park Ave.