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NEW YORK CITY-Murray Hill Properties and Jamestown have closed on the $310 million purchase of 1250 Broadway, between West 31st and 32nd streets, from SL Green Realty Corp. GlobeSt.com first reported that the 39-story property went on sale early January. GlobeSt.com then exclusively reported that Murray Hill Properties was the buyer of the 770,000-sf office tower only days before the first bid was due in early February.

In early March, locally based SL Green entered into a hard contract for its sale of the property for approximately $463 per sf, at a capitalization rate of 4.5%. SL Green declined to discuss its disposition strategy regarding this deal when contacted by GlobeSt.com at the time and still “declines further comment” at this time, according to a company spokesperson; however, company officials previously said that the firm was pleased with the outcome.

Carlton Advisory Services also recently closed the $215 million of acquisition and mezzanine financing for the acquisition of the tower. The firm secured a $175 million first mortgage with a “major German lender” at an “extremely competitive spread” not easily obtained in today’s market, the firm explains in a prepared statement. In addition, a “prominent REIT” provided $40 million of mezzanine financing to complete this financing. The transaction was closed on behalf of Norman Sturner of Murray Hill Properties and a large German opportunistic equity fund. Carlton chairman Howard Michaels tells GlobeSt.com that the “prominent REIT” is SL Green and the lender is German Bank LBBW.

The building’s sale caps a successful nine-year period of ownership and management by SL Green, during which time the property’s value more than tripled, according to a previous SL Green statement. The company acquired the building in 1999 for $93 million, and then sold a 45% interest to SITQ in 2001 in a transaction that valued the property at $126.5 million. After executing more than 630,000 sf of leases and completing a $6.8-million building renovation program, the partners recapitalized the property in Oct. 2006, with an agreed-upon value of $260 million–at which time SL Green’s economic stake increased from 54.9% to 66.2%.

Marc Holliday, CEO of SL Green, previously said in a prepared statement that “our track record there illustrates SL Green’s unsurpassed strengths in recognizing latent value in a property and bringing it to full realization. In addition, our working partnership with SITQ has never been stronger.”

Cushman & Wakefield acted on behalf of the seller. Richard Baxter, who handled the marketing of the sale, along with Ron Cohen, Scott Latham and Jon Caplan of C&W, previously told GlobeSt.com that the property was 99% occupied; however, 30% of the building is rolling over within the next five years, he added. Market rents are about $60 per sf in the area; however, the asking rents in the building are in the mid-$30s, he said.

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