Harbor Picks Up Broadway Tower for $150M

NEW YORK CITY-Less than a year after making its first purchase here, Norfolk, VA-based Harbor Group International said Tuesday afternoon that it has made its second, with an affiliate of the company picking up 1412 Broadway for $150 million. Seller Murray Hill Properties had paid $105 million for the 415,135-square-foot office property in 2004. The deal was first reported last week by the New York Post.

Jordan E. Slone, Harbor Group’s chairman and CEO, says in a release, “1412 Broadway presented an excellent opportunity to acquire a core office building in Manhattan’s Times Square submarket. With little commercial development expected in the immediate future, the building will continue to appeal to a wide range of tenants and benefit from positive rental rate trends in a rapidly improving New York office market.”

Murray Hill had implemented an extensive modernization program at the circa-1926 tower, including new electrical, elevator, mechanical and communications systems, as well as refurbished lobby entrance, elevator cabs and common area finishes. Harbor plans an additional $10-million investment in capital and tenant improvements.

Currently the property is 84% occupied, with a tenant roster that includes Jones New York and Escada. In January, Harbor Group acquired 4 New York Plaza from JPMorgan Chase. That Downtown office property is currently 95% leased, with the major tenants comprising JPMorgan Chase and the New York Daily News.