NEW YORK CITY—The Zar Group received a $210 loan from Goldman Sachs to refinance its building located at 1450 Broadway, between W. 40th and W. 41st streets, in the center of Times Square.
The five-year loan offers full-term interest-only payments.
1450 Broadway is a 42-story, 415,000 square-foot office and retail property with signature tiered floor architecture, including 16 tower floors. The Zar Group renovated the space adding a Moed de Armas-designed lobby, new elevators, mechanical systems, key card building security, a new tenant-controlled HVAC system and refurbished restrooms.
In Jan. 2011, the Zar Group in a joint venture with the Hakimian Organization and Royal of America Management acquired 1450 Broadway, a building constructed in 1931. The sellers were the Moinian Group holding the property in a joint venture with the Chetrit Group and EJME, and the purchase price was $204 million. The building tenants at the time of the refinance include Pacific Alliance USA, BCBG and Iconix Brand Group. This ownership and tenant information was obtained from Real Capital Analytics.
The Zar Group is the investment property arm of the Zar family. They own and operate Studio One, a privately-held women's dress manufacturer. Their primary clients include JC Penney's, Sears, Dress Barn, Ross, TJ Maxx and Macy's, according to the Zar Group's LinkedIn profile.
Meridian Capital Group's senior managing director Tal Bar-Or and VP Richard Sutton negotiated the refinancing. Bar-Or commended the Zar Group's reposition of the property. He noted several lenders offered much higher proceeds but the team chose moderate leverage, while still building a large capital base for future acquisitions.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
