Harbor Group Sells 415 KSF Times Square Office Tower for $250M
- Jul 22, 2014
Harbor Group International has sold 1412 Broadway, a 24-story, 415,135-square-foot office tower in Manhattan, for $250 million, it was announced Monday by HGI and by CBRE, which represented HGI in the transaction.
The buyer was various entities controlled by Isaac Chetrit, a CBRE spokesperson told Commercial Property Executive.
Built in 1926, the building is at the northeast corner of Broadway and 39th Street, close to the Times Square subway station.
HGI purchased the property for $150 million in December 2010 and subsequently completed a $10 million renovation program that included a renovation of the lobby, entry façade, corridors and restrooms, as well as new windows and infrastructure upgrades.
Along the way, the property’s occupancy increased from 84 percent in 2010 to its current 97 percent. Tenants include Jones New York, One Step Up, Escada USA, OuterStuff, Securitas Security Services and Provident Bank.
“When we purchased the property, our investment thesis was based on the projected rapid growth of the Times Square submarket,” HGI President T. Richard Litton said in a release. “Our predictions proved accurate, as the market lived up to our expectations.”
The CBRE team consisted of Darcy Stacom, Bill Shanahan, Jeff Dunne and Paul Gillen, of CBRE Institutional Properties.
“Harbor Group did a tremendous job repositioning the asset to benefit from the escalating demand in the area from fashion and TAMI tenants,” Stacom said in a release. (TAMI refers to the Technology, Advertising, Media and Information sectors.)