The deal is believed to be the highest total price paid for a single office building in Westchester County. The transaction, valued at about $213 per sf, ranks second to the record $219 per sf Heritage Realty Services LLC of New York City paid Reckson Associates Realty Corp. earlier this year for 3 Gannett Dr. in White Plains.
A spokesman for Beacon Capital Partners refused to comment on reports that its Beacon Capital Strategic Partners IV Acquisition, LLC is in contract to acquire the asset, located at 44 South Broadway adjacent to the Westchester and the Pavilion shopping malls. Cushman & Wakefield, which is the sales agent for the property, also declined comment. Officials of sales agent Cushman & Wakefield, while not commenting on the identity of the buyer or the sales price, did confirm that the property is under contract and is expected to close sometime in June.
Andrew Merin, vice chairman, Gary Gabriel, executive director and Patrick Colwell, senior director of C&W's capital markets group, along Edward Weiss, vice chairman and senior director Gregory Frisoli, represented the seller, Westchester One LLC, and procured the buyer. Westchester One LLC is an entity of the developer of the property, Bianco & Pepe of Bronxville. The 21-story high rise was built in 1975 and is currently 94% leased. Argent Mortgage leases approximately 300,000 sf at the building, while IBM leases another 279,000 sf. However, more than 90% of the IBM space is now subleased to other firms.
Other major tenants at the building include Oxford Health Plans, which leases 56,000 sf; Reuters, which occupies 42,000 sf; and Blue Sky Studios, which leases more than 100,000 feet.
Beacon Capital Strategic Partners IV Acquisition LLC closed in April after raising $2 billion in equity capital, making it what is believed to be the largest office-focused fund in the US. The fund has closed or is committed to close about 10 transactions. Beacon's Fund III closed in June 2004 with about $1 billion in equity capital.
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