NEW YORK CITY-The Carlton Group, an international real estate investment bank, has been retained to sell 30 Broad St. in the heart of Lower Manhattan’s Financial District, company chairman Howard Michaels tells GlobeSt.com in an e-mail. While terms of the sales efforts were not disclosed, a source close to the deal says the firm was tapped by property owners Gotham Realty Holdings and Sun Realty to sell its long-term leasehold in the 50-story, 450,000-square-foot Downtown office building, located next to the New York Stock Exchange.
“It has always had a very high occupancy,” the source says, who asked not to be named due to ongoing negotiations. The property is expected to sell outright or with a minority interest around $142 million, or approximately $300 per square foot, the source adds. “Considering that buildings in Midtown are selling for $700 and $800 a foot, this is tremendous value for an investor.”
The sales efforts come at a time when large New York-based investment firms and REITs are eyeing Downtown office assets. Recently, SL Green Realty Corp. bought 180 Maiden Lane, Vornado Realty Trust snatched up 33 Maiden Lane, Beacon Capital Partners recapitalized 195 Broadway and Rudin Management Co. bought out its joint venture partner Rose Associates at One Battery Park Plaza. The source says a mix of international investors and local companies are eyeing the asset.
“The big, smart guys are buying big Downtown,” the source says. “And you can buy buildings Downtown for half the price in Midtown.”
At $300 a foot, the source says the buyer’s initial annual yield would be nearly 7% compared to the 3% and 4% cap rates in Midtown. Tenants here include the New York Stock Exchange, Posner Advertising and the Bank of New York. In addition, the property’s second and third floors also provide repositioning opportunities for retail usage.
In 2011, Carlton completed more than $3 billion in sale, recapitalization and acquisition transactions, including involvement with large deals such as One Park Avenue and 1180 Avenue of the Americas.
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