NEW YORK CITY—Capitalizing on Downtown's golden moment, Broad Street Development has agreed to buy 80 Broad St. from Savanna with ambitious plans for the asset.
“As a value-add developer, we see a tremendous renaissance Downtown,” Broad Street COO and principal Daniel Blanco tells GlobeSt.com in this UPDATE. “I see a complete transmogrification of the tenants. It used to be financial and insurance only, but now we have media, tech, architecture and engineering, so we think assets there are uniquely poised to take advantage of this shift.”
Savanna brought the building's occupancy to just under 90%, but the new owner intends to bring that number up to 100%. It plans to do that through a multi-pronged approach.
In order to entice tech tenants, Broad Street will “improve the telecommunications infrastructure and create smaller units that will allow tech firms to grow,” Blanco says, either by adding to their existing space in the city or by starting out small with an eye toward future expansion.
Further, the company has a “unique pre-built program so tenants have a wide selection of 3,000 to 5,0000-square-foot units and they know when they can move in; there's no confusion and we have a good inventory we can manage. This is the linchpin we've used for the last 10 years.” Broad Street recently sold 55 and 61 Broad St., where it deployed this strategy. The firm will market the building on it's own.
Blanco also prides himself on being upfront and fair with both brokers and tenants. “We leased about two to three million square feet of space at 55 and 61 because we have relationships with brokers, they know they're going to be treated fairly and we have a tenant friendly lease. With tenants, many of the firms seeking 5,000 to 10,000 square feet of space are busy running their businesses, they don't have time to pick out carpeting. We discuss terms from the beginning so they know what they're going to get, down to the hinges.”
And in perhaps the biggest endorsement of 80 Broad St. is this: Blanco and his partner, CEO and principal Raymond Chalme, will relocate to the building in the next few months. The purchase is slated to close sometime in the fall.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
