CBRE today (Wednesday) announced that 4 New York Plaza has been sold by Harbor Group International to a joint venture between HSBC Alternative Investments Limited (HAIL) and EDGE Fund Advisors LLC for an undisclosed amount.
Harbor Group purchased the asset for a reported $108.9 million from JPMorgan Chase Bank, N.A. in January, 2010.
At that time, JPMorgan signed a long term lease at the building. Harbor subsequently signed Daily News, L.P. and American Media Operations, Inc. to long term leases stabilizing the approximately 1.1 million square foot asset at 95% occupancy.
4 New York Plaza is located on the corner of Water Street and Broad Street in Downtown Manhattan and features abundant electrical capacity and redundant emergency power and base building systems which are critical to the tenant base.
This is HAIL’s and Edge’s second major purchase in New York having purchased 1540 Broadway in two phases between 2010 and 2011.
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. CBRE also brokered the sale of 1540 Broadway to Edge.
Jordan Slone, chairman and chief executive officer of Harbor Group International, said “We were pleased to be able to execute our business plan in a relatively short timeframe and bring the occupancy of the building from 75%-95% in less than two years.
“We were fortunate to acquire this property at the bottom of the market. Since that time, the Manhattan market has seen a significant recovery. Our asset management and leasing teams did a fabulous job of increasing occupancy.”
Mark R. Keller, chairman and chief executive officer of Edge stated, “We have a lot of confidence in the revitalization and growth of the downtown NYC market. Our purchase of 4 New York Plaza is a long term strategic play.”
Bill Shanahan of CBRE said, “We are always pleased when we can create a win-win scenario for two great clients.”
Over the last few years, HGI has also acquired three additional properties in Manhattan, including its December 2010 purchase of 1412 Broadway, a 415,135 square foot trophy office tower in the Times Square Area.