"We pre-empted the whole world," Norman Sturner, MHP co-founder and principal, tells GlobeSt.com. "It is what we consider a coup."
Sturner explains that "the teaser had been sent out" on 1250 Broadway, adding that the first bids were to be submitted on Feb. 12. "But there were no bids. We bought it this morning [Friday]," Sturner says.
About a year ago, SL Green recapitalized on the property due to its jump in value. In 2001, when SL Green and SITQ, a subsidiary of the Caisse de depot et placement du Québec, formed a JV, the property was valued at $126.5 million. In October 2006, the class A building was worth $260 million. In early January, GlobeSt.com reported that SL Green hoped the property would fetch approximately $350 million.
Richard Baxter, who handled the marketing of the sale, along with Ron Cohen, Scott Latham and Jon Caplan of C&W told GlobeSt.com in January that SL the property was 99% occupied; however, 30% of the building is rolling over within the next five years, he added. He further explained that he expected many buyers to show interest. Market rents are about $60 per sf in the area, however the asking rents in the building are in the mid-$30s, he said.
The tower property is the tallest reinforced concrete building in Manhattan and is the only glass and steel structure of its kind in the neighborhood, according to SL Green. It boasts windows on all sides and offers panoramic cityscape and river views. Major tenants include Archstone-Smith, Reserve Management, Visiting Nurse Service of NY and Woori Bank.
A spokesman for SL Green had no comment. A C&W spokesperson did not return calls for comment by deadline.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
