An investor group led by ABS Partners chairman Earle Altman has acquired the office and retail building at 915 Broadway in a $140 million deal that includes pre-payment of the existing mortgage.
In 1981, Altman and a group of investors acquired 915 Broadway for $6 million.
This new off-market transaction allows the original partners to monetize their investment while providing Altman and the new investor group the opportunity to own a high-quality, steel and concrete building completed in 1926.
The group includes savvy long-time real estate investor Richard Hadar, investors John Zirinsky and Jeffrey Feil and Altman’s fellow ABS Partners principals Gregg Schenker, Steven Hornstock and James Caseley, who are equity participants in the acquisition.
“We are delighted to continue our long-standing affiliation with this high-quality, well-located property,” said Schenker.
“The strong fundamentals of the location, superior construction, well-maintained infrastructure and future planned improvements will further increase the value of 915 Broadway over time.”
“This is one of several deals I have done with ABS over the last year, as I have been deploying significant capital I raised before the market collapse in 2007,” said Hadar.
“915 Broadway is one of the best opportunities I have seen in quite a while in New York. Earle Altman, Gregg Schenker and Steve Hornstock, as well as the entire ABS team, are a first-rate organization and I am proud to be partnering with them.”
According to a statement, the $140 million all-in acquisition, which includes prepayment of the existing mortgage, was financed by JPM Chase by arrangement through Simon Ziff, Russell Schildkraut, and Jonathan More of The Ackman-Ziff Real Estate Group.
The 20-story, 250,000 s/f office and retail property at East 21st and Broadway is fully occupied by a roster of respected technology related businesses and new media enterprises.
The building stands at the epicenter of Manhattan’s Silicon Alley, one of the hottest office and retail markets in the city, and complements ABS Partners’ significant property management portfolio in the area, as well as the holdings of Richard Hadar, whose previous acquisitions include the Citicorp Center at 601 Lexington Avenue and the LVMH building at One East 57th Street.
New media and technology businesses have embraced the area surrounding 915 Broadway, a central location with easy access to mass transportation, good housing options, colleges and universities, dining and shopping options.
With amenities offering a high-quality environment for living, working and learning, the Midtown South submarket, where 915 Broadway is located, has a vacancy rate of approximately 5%, the lowest in the United States.
A distinguishing feature that sets the building apart in a tight market is the ultra-high bandwidth Internet service available at each tenant’s premises via a network of fiber optic cable that runs through the building and is connected to the Verizon redundant fiber loop, strategically located beneath the building.
This service delivers ultra-fast, high-capacity connectivity and protection against service interruptions.
Future plans for the building include the redesign and expansion of the lobbies and the revitalization of its retail presence. The Broadway entrance will be modernized and widened, with a new two-story lobby.
Additionally, the retail space, containing more than 14,000 s/f and currently occupied by a restaurant, will be available for lease in the first quarter of 2014.
James Caseley, ABS Partners principal and leasing agent for the property, has overseen improvements to the building over the past several years, including a successful prebuilt office program.
Counsel representing ABS Partners in the acquisition was Lawrence Simon and Alyssa Mayer of Morrison Cohen LLP.