NEW YORK CITY—A pair of financings has taken place alongBroadway.

|

RXR Realty secured $200 million in acquisition financing for 61Broadway, a 786,975-square-foot office building Downtown, whileInvesco Real Estate locked up funds to buy 1370 Broadway. CBRE, thebroker on the latter deal, declined to reveal the amount of theloan taken out for the building, but Real Capital Analytics statesthe price of the office tower was $186 million.

|

For the Lower Manhattan property, HSBC provided the non-recourseloan, in which $185 million was funded at closing with anadditional $15 million in proceeds for future capital expendituresand leasing commissions to be drawn down at RXR's option. JLLmanaging director Kelly Gaines and SVP Brett Rosenberg led the teamon the transaction.

|

“An impressive building backed by best inclass sponsorship and located in Manhattan's highly desirablefinancial district checks all the boxes in regards to what lendersseek,” says Gaines. “In addition, the neighborhood is moving towarda 'live, work, play' environment, which is gaining significantmomentum among today's work force.”

|

The 33-story tower was acquired in Marchfor $330 million in a sale transaction led by JLL's vice chairmenRichard Baxter, Jon Caplan, Yoron Cohen and Scott Latham. It hostsa variety of tenants, including those in the financial, legal,education, technology and healthcare sectors.

|

Meanwhile, for 1370, Invesco took out a10-year full-term, interest-only loan that was provided byPrincipal Global Investors. The financing for the newly renovated16-story, 280,000-square-foot office building—which was acquiredfrom Normandy Partners—was arranged by CBRE's Jason Gaccione, SVPand Shawn Rosenthal, EVP in New York, along with vice chairmen JayWagley and Mike Bryant in the firm's Dallas office.

|

Says Gaccione, “Due to the institutional nature of the borrower,coupled with the low leverage loan request, we were able to createa competitive bid process among various balance sheet lenders. Inthe end, Principal recognized Invesco's vision for the investmentand capitalized on the opportunity to expand their presence in thismarket, while deepening its relationship with Invesco. Principalnot only delivered competitive pricing, but also various creativeloan structure components.”

|

1370 Broadway sits at the convergence of two retail hubs, TimesSquare and Herald Square. The property's southeast corner exposureputs it in an ideal position to capitalize on the neighborhood'sretail and office growth, according to CBRE.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Rayna Katz

Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.