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Equity and Vornado Slice Up 1540 Broadway

NEW YORK CITY-Equity Office Properties and Vornado Trust have purchased the office and retail portions, respectively, of the edifice commonly known as the Bertelsmann Building in Midtown.

By Tom Sosnowski | Updated on July 12, 2006

NEW YORK CITY-A partnering of sorts took place yesterday as Equity Office Properties closed on its acquisition of 1540 Broadway–the Bertelsmann Building . Vornado Realty Trust acquired the retail, signage and parking components of the asset. The deal is valued at $525.1 million.

The Midtown property, located between 45th and 46th streets, contains 152,000 sf of retail space and 906,287 sf of office space. Paramount Group Inc., in partnership with Principal Real Estate Investors, paid about $426 million for the building two years ago. Doug Harmon of Eastdil Secured acted as the exclusive advisor the seller, Paramount Group.

The office tower is currently 97.5% leased. However, because of a scheduled near-term tenant vacancy, Equity will have a large block of space available in a market with rapidly tightening fundamentals.

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