A joint venture between Taconic Investment Partners, TH Real Estate and Squire Investments LLC has purchased 817 Broadway for $109 million.
The property, a 14-story commercial building located at the corner of East 12th Street in Greenwich Village, was acquired in an off-market transaction from two families. The sale marks the first time that the building has changed hands in more than 60 years.
“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,” said Dimpesh Darjee, the director of acquisitions for TH Real Estate’s New York regional team. “We are particularly thrilled to be working again with Taconic Investment Partners as developer and partner. This represents another investment in a successful long-term relationship between our two firms.”
Taconic, TH Real Estate and Squire plan to reposition the building. To make way for the renovations, the companies will empty out the building by allowing tenant leases to expire. Mesa West Capital provided a $102 million loan for the acquisition and redevelopment of the property.
“817 Broadway is an extraordinarily well located building that hasn’t had any significant money spent on it in over 60 years,” said Paul Pariser, co-CEO of Taconic Investment Partners. “We plan on making a significant capital investment to upgrade all building systems, a complete façade restoration including the creation of new storefronts and a new lobby in order to transform this building into one of the most sought after Midtown South office buildings. There is deep demand in the Midtown South area for this type of space with its boutique size floorplates, abundant light through large windows and extraordinary high ceiling heights.”
The building, which was built in 1900, was designed by George B. Post, who is credited for designing the New York Stock Exchange. The building contains offices for co-working space City Space Suites and the Social Services Employees Union.