Barclays Provides $350M Loan to Refinance Leasehold Interest in 43-Story Manhattan Office Tower
NEW YORK CITY — Barclays has provided Shorenstein Properties LLC with a $350 million loan to refinance the leasehold position in 1407 Broadway, a 43-story, 1.1 million-square-foot office tower near Times Square in New York City.
The five-year loan features a floating interest rate. Solil Management, the company that manages the assets of late real estate mogul Sol Goldman, owns the land upon which 1407 Broadway is situated. The building is located at 1407 Broadway between 38th and 39th streets, two blocks from Times Square, one block from Bryant Park and six blocks from Hudson Yards.
Shorenstein acquired the property’s ground lease from Abraham Kamber Associates and the sublease from Lightstone Group in April 2015 for $330 million. Shorenstein then implemented a three-year, $62 million renovation to improve the lobby, common areas, security, roof, terrace and elevator cabs.
The building also underwent a retail renovation, adding new storefronts and signing tenants such as Num Pang, Luke’s Lobster and ’Wichcraft, a sandwich shop. The retail portion of the building is 95 percent leased. Over the past 12 months, 160,000 square feet have been leased throughout the building.
Geoff Goldstein of JLL, which arranged the loan, says Shorenstein moved forward with this financing due to the favorable lending climate.
“Shorenstein is taking advantage of strength and liquidity in debt capital markets to refinance at attractive spreads with maximum prepayment flexibility,” says Goldstein.
The building offers loft-like space with 12-foot ceilings and flexible floorplans ranging from 14,000 to 55,000 square feet. The property features multiple outdoor spaces for tenants as well as dedicated outdoor seating on the Broadway streetscape. The property offers an additional entrance on 7th Avenue.
Architect Ely Jacques Kahn designed 1407 Broadway, which was built in 1950.
Goldstein, along with Michael Gigliotti, Christopher Peck, Andrew Scandalios and David Giancola of JLL represented the borrower in the loan transaction.
— Alex Tostado