NEW YORK CITY — Allied Partners has teamed up with private equity real estate firm Brickman to purchase the Brill Building, a historic office building located at 1619 Broadway in New York City, for approximately $185.5 million. For more than 60 years, the iconic building has housed offices for songwriters and entertainers, such as Woody Allen, Martin Scorsese, Neil Diamond and Paul Simon. The appraised value of the Times Square property is approximately $250 million.
Eric Hadar, founder and chairman of Allied Partners, a private real estate investment, management and development firm, says the new ownership plans to reposition the 175,000-square-foot building. Allied Partners and Brickman will dedicate the first four floors of the 11-story property to retail, and the remaining retail and commercial space will undergo extensive renovations.
“We’re thrilled that Eric Hadar and his team are giving the Brill Building the attention it deserves,” says Tim Tompkins, president of the Times Square Alliance. “Their commitment to preserving one of New York City’s landmark buildings while supporting the ongoing development of the Times Square business community is very exciting for the city.”
The new owners are in active negotiations with retailers and potential office tenants, according to Hadar. Allied Partners and Brickman anticipate a grand reopening of the space in late 2014.
“We have a vision to capitalize on the legendary reputation of the property by transforming it into a modern day creative center for fashion, arts, media and entertainment in New York,” says Hadar.
Starwood Property Trust (NYSE:STWD) provided a $158.8 million loan to help finance the transaction. Square Mile Capital Management LLC provided $40 million in financing.
“We are excited to be involved in a project that will help modernize one of Time Square’s most famous and storied buildings,” says Boyd Fellows, president and director of Starwood Property Trust. “This transaction is a prime example of our unique ability to act as a one-stop shop to provide large, highly specialized loans that meet the needs of high-quality sponsors like Allied Partners and Brickman.
Adam Spies and Doug Harmon of Eastdil Secured brokered the transaction. Jeffrey Roseman of Newmark Grubb Knight Frank will handle the leasing responsibilities for the retail portion of the Brill Building, and Paul Kotcher of Brickman will handle the leasing responsibilities for the commercial portion.
The Brill Building is the future home to the Songwriters Hall of Fame, an organization that honors those whose work represents the most beloved songs from the world’s popular music songbook. The Songwriters Hall of Fame is an arm of the National Academy of Popular Music.
“All of us at the Songwriters Hall of Fame are tremendously excited by Eric Hadar’s deep understanding of the cultural legacy of this New York City landmark and look forward to being a part of the renaissance of the new Brill Building, once home to some of the greatest songwriters of all time,” says Jimmy Webb, chairman of the Songwriters Hall of Fame. “We’re extremely grateful for this opportunity to enhance the profile of the Songwriters Hall of Fame and to successfully pursue our mutual interests with Mr. Hadar and his partners.”
Allied Partners has acquired more than 30 properties since its founding in 1993.
Brickman was founded in 1992 and has since invested more than $980 million of equity capital and $3.4 billion in total capital in real estate transactions. Brickman owns and manages more than 2.2 million square feet of office, hotel and residential real estate.
— John Nelson