NEW YORK CITY-Brookfield Office Properties and Broadway Partners are forming a joint venture to recapitalize the ownership of the 1.6-million-square-foot office property at 450 W. 33rd St. Terms were not disclosed; a spokesman for Broadway Partners declines comment beyond what is contained in a statement from the two companies.

The Wall Street Journal reported on Thursday that BOP will put in relatively little equity but will be on the hook for the mortgage that comes due about a year from now. Broadway Partners paid $664 million for 450 W. 33rd in June 2007, taking out a $365-million mortgage, according to city property records, and will retain a minority stake in the property, according to the WSJ.

A source familiar with the transaction tells GlobeSt.com the deal has not yet closed, and that it’s not certain how much BOP equity will be involved in the JV. Howard Michaels of the Carlton Group acted as financial advisor to Broadway.

In a statement, Broadway CEO Scott Lawlor says the company is excited about “bringing Brookfield, an experienced, well-capitalized real estate company, into the ownership of this attractive asset with significant upside potential.” He adds that 450 W. 33rd, situated between Penn Station and the Hudson Yards redevelopment, is located “in one of the most dynamic submarkets of Manhattan, and we expect the property to benefit from New York City’s office market recovery already underway.”

 

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.