The 1540 Broadway office building is set to undergo a $150 million overhaul that will modernize the building with new amenities and deliver more space for bigger firms. GFP Real Estate and BDT & MSD Partners are leading the efforts in repositioning the 907,000 square foot property.
Apollo is providing the financing, with JLL serving as the exclusive leasing agent.
Currently, the floor plates at 1540 Broadway range from about 18,000 to 28,000 square feet in size. The capital improvements call for large blocks of contiguous space that can reach as much as 250,000 square feet. This is expected to be a better fit for larger companies involved in the life sciences, bioengineering, law, financial and tech sectors, according to GFP and BDT.
Additionally, more than 45,000 square feet of amenities are coming to the eighth and 36th floors. The eighth floor will get upgrades to the fitness center and wellness facilities, while the 36th floor will see an 18,500 square foot executive lounge and a roughly 6,200 square foot landscape terrace.
“Today’s tenants expect more than traditional office space – they want environments that support their teams, enable productive collaboration and offer a higher quality day-to-day experience for employees and clients," Clark Finney, executive managing director at JLL, said in a statement.
“The market is clear: companies are choosing workplaces that improve how people work, meet and connect. Buildings that achieve that standard are the ones attracting the most interest in today’s market.”
The repositioning is expected to be completed later this year.
As office still recovers from the pandemic, the national trend has been a fight to quality. That's especially pronounced in Manhattan. In fact, a recent report from Avison Young foundthat Manhattan trophy assets that have been renovated after 2018 have enjoyed rent increases of $26 per square foot to $106 per square foot. And across all property types in the borough, rents have jumped by 27 percent to $82 per square foot on offices that have been renovated since 2019.
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