Shorenstein Properties Obtains $350M for Iconic Manhattan Address
- Nov 07, 2019
Shorenstein Properties has obtained a $350 million loan to finance its leasehold interest in 1407 Broadway, a 43-story Manhattan office tower. Barclays provided the five-year loan for the 1.1 million-square-foot property, with JLL Capital Markets arranging the financing on behalf of Shorenstein, according to a statement by the brokerage firm.
Built in 1950 and designed by Ely Jacques Kahn, the Midtown property is located on Broadway, between 38th and 39th streets, neighboring Times Square and Bryant Park. Shorenstein acquired the asset from Lightstone Group for $330 million in May 2015, according to Yardi Matrix. The sale was subject to a $268 million loan held by Bank of America.
Shorenstein then launched a three-year, $62 million modernization program that included the renovation of the lobby, common areas, roof, terrace and security, along with elevator cab upgrades. The property has seen 160,000 square feet of leasing activity over the past year. Following a major retail repositioning and the addition of new storefronts, the building’s retail space is 95 percent occupied, with tenants including eateries Num Pang, Luke’s Lobster and ‘Wichcraft.
Building features include loft-like space with 12-foot ceilings, floorplans ranging from 14,000 to 55,000 square feet, multiple outdoor spaces for tenants and a through-block lobby with an additional entrance on Seventh Avenue. The tower is located across the street from 1400 Broadway, where Uber leased its second Manhattan location in early 2018, taking up the entire 12th floor of the 37-story building owned by Empire State Realty Trust.
A JLL Capital Markets team comprising Senior Director Geoff Goldstein, Senior Managing Director Michael Gigliotti and Managing Director Christopher Peck led the financing deal, while JLL’s Senior Managing Director Andrew Scandalios and Managing Director David Giancola provided office expertise. The transaction was secured by HFF prior to its acquisition by JLL in July.