NEW YORK CITY-Closing the loop on a deal first reported in October, Monday Properties and partner Rockpoint Group LLC said Monday that they had closed on the sale of 1440 Broadway, a 25-story Midtown office tower. As GlobeSt.com reported two months ago, the buyer was American Realty Capital's New York Recovery REIT, which paid $528.6 million for the asset.
Currently 94% occupied, the 751,000-square-foot property was 80% owned by Rockpoint and 20% by Monday Properties, which managed it. Adam Spies and Doug Harmon of Eastdil Secured represented the sellers in the deal, while NYRR was represented in-house.
“Our deal was negotiated swiftly and all parties are pleased with the result,” says Anthony Westreich, CEO of Monday Properties. “We have owned the building for more than a decade, and have enjoyed a successful collaboration with Rockpoint Group over the past year.”
In announcing the deal this past October, NYRR CIO Michael Happel said the Times Square South neighborhood offered “significant long-term potential as the Times Square submarket pushes south and the Bryant Park submarket pushes north. This institutional-grade asset is in excellent physical condition and has a high-quality roster of tenants from various industries.”
Approximately 40% of 1440 Broadway's rental income is derived from investment-grade rated companies. The largest tenant in the building is Macy's, which occupies 203,196 square feet, or approximately 27% of the structure. Some media companies also call the tower home, including Primedia and Advance Magazine Publishers, according to RCA. Those two leases, which both expire in the fourth quarter of 2015, span 171,000 square feet and 108,000 square feet, respectively.
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