NEW YORK CITY — Harbor Group International (HGI) has acquired 1412 Broadway, a trophy office tower located near Times Square in Midtown Manhattan, for $150 million. The company's near-term plans include completing a $10 million in capital improvements program for the building.
Constructed in 1926, 1412 Broadway contains 415,135 square feet over 24 stories. The property was 84 percent leased at the time of closing to a tenant roster that includes fashion designers Jones New York and Escada. The building had recently undergone a repositioning program completed by the seller, Murray Hill Properties. As part of the project, the building's electrical and mechanical systems were modernized, the lobby entrance was refurbished, and elevator cabs and common areas were upgrades.
HGI completed the purchase in a direct deal with Murray Hill Properties. Joel Siderow of Murray provided in-house representation for his company.
“1412 Broadway presented an excellent opportunity to acquire a core office building in Manhattan's Times Square submarket,” said Jordan Slone, chairman and CEO of HGI, in a statement. “With little commercial development expected in the immediate future, the building will continue to appeal to a wide range of tenants and benefit from positive rental rate trends in a rapidly improving New York City office market.”
— Coleman Wood