A partnership led by Taconic Partners has paid $109 million for the 140,000 s/f office building at 817 Broadway.
Taconic, in partnership with TH Real Estate (a division of TIAA Global Asset Management) and Squire Investments LLC, announced they completed an off market deal to buy the property on the corner of East 12th Street in Greenwich Village from two private families.
The sale marks the first time the building has changed ownership in over 60 years.
Mesa West Capital provided the mortgage financing for the acquisition and redevelopment. Over the next 12 to 24 months, the partnership plans to reposition the building into a Class-A “institutional jewelˮ that will stand out amongst other new and recently renovated boutique office buildings in the Midtown South submarket.
The repositioning will include making significant capital improvements, and vacating the building as the existing tenants naturally expire.
“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.”
Built in 1900, 817 Broadway was designed by architect George B. Post, who also designed the New York Stock Exchange. “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, 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.”
TH Real Estate bought the property on behalf of TIAA Real Estate Account which provides investors access to commercial real estate.