Located at 568 Broadway at the corner of Prince Street in SoHo, the 12-story building is a turn-of the century landmark. The $87.5-million deal was first hammered out in late October, with Insignia/ESG brokers on both sides of the transaction working through the night to come up with a contract. (Read earlier story.)
The buyers of the 325,000-sf brick and terra cotta structure include members of the Hadar, Cayre and Adjmi families, who were represented in the acquisition by Insignia's Kenneth Zakin. Yoron Cohen, Richard Baxter. Kevin Haggarty, also of I/ESG, negotiated on behalf of the Shelbourne REITs.
The building was a red-hot property from the time it hit the sale block late last summer. "We were retained in early September and we marketed the property for six weeks," Baxter told GlobeSt.com in October. "We had 15 bids to acquire the property and several parties put in pre-emptive bids."
After the assumption of debt on the asset as well as the payment of closing costs and adjustments, Shelbourne netted roughly $73 million from the sale. REITs I and II will be allocated roughly $28.4 million each with $16.1 million going to Shelbourne III.
The new owners say they plan to initiate a major capital improvement program at the 106-year-old property. "Our aim is to create an extremely high-end, service-oriented building catering to very sophisticated, image-conscious firms," says Allied president Eric Hadar.
Built in 1897, the building runs the entire blockfront along Prince Street from Broadway to Crosby Street. Its 25,000 sf of ground-floor retail space is 100% leased and includes high-profile national tenants Armani Exchange and Eddie Bauer Inc. The property's office anchor is Scholastic Inc., which occupies more than 100,000 sf.
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