NEW YORK CITY — Equity partners Broadway Partners and Investcorp have recapitalized 280 Park Avenue, a 1.23 million-square-foot, Class A office building located in Midtown Manhattan. The joint venture reached an agreement with the property's mezzanine debt holders, SL Green Realty Corp. and Vornado Realty Trust, that will help fund a $150 million repositioning and re-tenanting program.
Prior to the recapitalization, Vornado and SL Green formed a 50/50 joint venture for the lenders' combined $400 million debt position in the property. The venture now owns a majority equity stake in it. Broadway retains an ownership interest in 280 Park Avenue and will remain its co-manager.
The repositioning of the office tower will include upgrades to the public areas as well as the installation of state-of-the-art infrastructure. The property currently has a large block of contiguous space that will be marketed for lease.
“Many great office properties were impacted adversely by the most recent market downturn but now offer great upside potential to investors who have the resources to take advantage,” said SL Green CEO Marc Holliday in a statement. “We see 280 Park as one of those opportunities and we look forward to working with our partners to realize the property's great potential.”
New York City-based EdgeRock Realty Advisors served as financial advisor to Broadway Partners on the transaction.
— Savannah Duncan and Coleman Wood