By Al Barbarino
Harbor Group International has sold 4 New York Plaza for $270 million – a whopping $163 million more than what the Norfolk, Virginia- based real estate investor paid for it in 2010 – to Edge Fund Advisors, city records show.
Edge purchased the roughly 1.1-million-square-foot, 22-story, Downtown office tower in partnership with HSBC Alternative Investments Limited, amid optimism of a Downtown rebirth that is being fueled in large part by the rise of One World Trade Center.
“We have an enormous amount of confidence in the revitalization of Downtown Manhattan,” Mark Keller CEO of Edge Fund Advisors said in a statement. “4 New York Plaza is in close proximity to the World Trade Center development and transportation hub, which is the epicenter of this activity. Our purchase of 4 NY Plaza is a testament to the value we envision from this rebirth.”
The building is approximately 95 percent leased to tenants that include JPMorgan Chase Bank, the New York Daily News and American Media Operations, Inc.
“We bought at the bottom of the cycle,” Jordan Slone, CEO at Harbor Group told Bloomberg earlier this year. “At the time we bought the building, I don’t think investors were as bullish on downtown as they are now.”
Edge and HSBC acquired the property on behalf of the HSBC Club Programme, a division of the multinational bank also owns 1540 Broadway and two office buildings in Washington, D.C.
“Since founding the HSBC Club Programme three years ago we have acquired over $1.3 billion dollars in trophy office properties in the U.S.,” Christopher Allen, CEO of HSBC Alternative Investments Limited, in a statement. “The Programme provides HSBC clients with direct exposure to otherwise inaccessible opportunities globally. The strong take up from investors is certainly a testament to the quality of the assets we have acquired.”
CBRE represented ownership on the leasing and sale of the Property. Darcy Stacom, Bill Shanahan, Jeff Dunne and Paul Gillen of CBRE were the brokers on the transaction.
Edge Fund Advisors is a Washington, D.C. based real estate investor and full service real estate asset manager.