Murray Hill, Jamestown Close on $310M Buy

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.