ASB Real Estate Investments has bought a slice of the retail in the Pritzker Prize-winning 465 Broadway.
The company said it has purchased a retail condo with some high-profile store frontage on Broadway, Mercer and Grand streets on behalf of its Allegiance Fund in a joint venture with Centurion Realty and Imperium.
ASB declined to comment on the details of the off-market transaction.
Last year, the New York-based Savanna paid $57 million for the retail space at 465 Broadway. That deal included 9,400 s/f of grade-level retail space and 4,700 s/f of below-grade retail space.
Nicholas Bienstock, managing partner of Savanna, said the property was sold for $80 million. “While we were sad to part with 465, it represents an extraordinary return for our investors in both IRR and multiple. We expect that the new owners will also do very well with their investment over time,” he added.
Woody Heller, Will Silverman, Eric Negrin, and Daniel Parker of Studley were the brokers in the transaction.
The street level space at 465 Broadway is 100 percent leased at below market rates to four tenants: Bose, Wells Fargo, Dermalogica, and Vivienne Tam.
The SoHo Broadway corridor is now home to many major national and international retailers and anchored by some of the biggest names in retail, including H&M, Top Shop, Zara, Uniqlo and Prada, which drive foot traffic along Broadway between Houston and Canal Streets.
“465 Broadway is great real estate on a highly visible corner in the heart of the SoHo retail market, where rents have grown almost four-fold in the past decade and are 30 percent higher than at the height of the market in 2007,” said Tal Masica of Savanna.
The acquisition fits with ASB’s portfolio strategy to increase holdings in “High Street” retail investments in upscale urban infill neighborhoods across the United States.
The company recently made similar purchases for the Allegiance Fund in Manhattan at 72-76 Green St. and 875 Washington St. in addition to acquisitions in Beverly Hills and Santa Monica, Denver, and in the South Beach district of Miami, FL.
Robert Bellinger, ASB’s president and CEO, said, “SoHo is one of New York City’s strongest retail submarkets, experiencing significant recent rent growth and attracting some of the world’s most prominent high-fashion brands.
“Heavily trafficked by tourists, the downtown district also is popular with New Yorkers looking for a trendier, more exclusive shopping experience.” he said.
Framed in steel and featuring floor-to-ceiling glass, the 13-story Jean Nouvel-designed building also known as 40 Mercer Street won the Pritzker Architecture Prize after its completion in 2006.