Manhattan Office Building Sells for $109M
- Nov 25, 2016
New York—Taconic Investment Partners joined forces with TH Real Estate on behalf of the TIAA Real Estate Account and Squire Investments to acquire the 14-story office building sitting at the corner of East 12th Street in Manhattan’s Greenwich Village.
The investment purchased 817 Broadway for $109 million in an off-market transaction from two families—the Frankels and the Levines—who had owned the building for more than 60 years. Los Angeles-based Mesa West Capital provided $102 million in mortgage financing for the acquisition and future redevelopment and leasing costs.
The 114,000-square-foot structure holds a Class B rating, but the new owners plan to reposition the asset into Class A over the next 12 to 24 months. The capital improvements will include upgrades to all building systems, a complete façade restoration, new storefronts and a new lobby. Work on the site will begin as soon as the existing leases naturally expire and the building is fully vacant.
“There is deep demand in the Midtown South area for this type of space with its boutique size floor plates, abundant light through large windows and extraordinary high ceiling heights,” said Paul Pariser, co-CEO of Taconic Investment Partners, in prepared remarks. “This property fits squarely within our strategy for value-add deals as we have recently redeveloped, re-leased and fully stabilized over a million square feet of midtown office space,” added Dimpesh Darjee, director of acquisitions for TH Real Estate’s New York regional team.
Built at the turn of the century, 817 Broadway was designed for Meyer Jonasson & Co. by George Post, the architect who is credited for designing the New York Stock Exchange on Wall Street. The building’s anchor tenant is Social Service Employees Union, which occupies 24,000 square feet of space on three floors. Broadway Kitchens & Baths occupies the 6,500-square-foot retail portion on the ground floor.