NEW YORK CITY-Taking title at 1450 Broadway is the Zar Group, who acquired the trophy 42-story, 400,200-square-foot Midtown office tower for $204 million. Located in the center of the Times Square submarket on the corner of 41st and Broadway, the group, along with investment partners, the Hakimian Family and the Hakakian Group, purchased the property from a partnership of The Chetrit Group, The Moinian Group and Edward J Minskoff Equities.
Bobby Zar, CEO of the Zar Group, formerly Zar City Properties, tells GlobeSt.com that the group has a “very strong preference” for Broadway properties and the resurgence of the Times Square submarket. “We are very bullish about the New York City market,” he says. “We are seeing lots of strength in the office and leasing right now. It is poised to recover, and we are getting a lot of interest in this property as well. We have been selectively looking for about three years right now for the right opportunity to come up.”
The building, which includes 16 jewel-box tower floors with panoramic views, is 86% occupied, and the group hopes to open up the building to new corporate office users. Avi Zukerman, director of acquisitions at the Zar Group, tells GlobeSt.com that asking rents for the base of the building go for the mid-to-high $40s per square foot, and in the tower, rents start at the mid-to-high $50s per square foot.
As of right now, Zukerman says two corporate office tenants are on-hand for the site, but the group cannot disclose the company names because lease negotiations are underway. Current tenants in the building include high-end fashion tenants like Neiman Marcus, BCBG and Buffalo David Bitton. “We see that the building has a very strong appeal,” Zukerman says, describing the building’s close proximity to other large corporate tenants and major law and professional firms near Bryant Park and Grand Central Station.
The deal also represents the improvement of the Times Square office submarket in general, at a going-in 5.5% cap rate, he says. Winoker Realty is handling management and leasing for the site.
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