Principal Real Estate Investors has acquired a majority interest in 1412 Broadway on behalf of an institutional client. The acquisition was done in a joint venture with an entity of Murray Hill Properties LLC, a prominent New York City real estate company. The newly formed venture will perform necessary upgrades to convert the property into a class A New York office building.
The 400,000-ft², Beaux Arts building enjoys an ideal location on the corner of Broadway and 39th Street, just South of Times Square, and has excellent access to public transportation. The property is just one block West and one block South of Bryant Park, which has become the center for various New York City events such as Fashion Week and many concerts. The building is 95% leased to over 50 tenants, including anchor tenants Escada USA, Inc., Hallmark and One Step Up, Ltd.
"The midtown Manhattan office market is one of the most coveted in the U.S.," said Jim Halliwell, managing director of acquisition and dispositions for Principal Real Estate Investors. "We are an active participant in this market and are very excited to partner with one of New York's most respected real estate companies to upgrade this property, increasing its long-term revenue potential."
A Murray Hill Properties LLC entity purchased 1412 Broadway two years ago in partnership with the Adjmi Family and Bobby Cayre, two prominent names associated with New York's fashion and real estate industries. In the two years since the purchase, Murray Hill Properties LLC and its partners have installed a new steel/glass façade designed by Moed de Armas & Shannon Architects, new store fronts and showroom windows, a glass canopy and entryway and have invested in various other upgrades throughout the building.
"Working with Principal Real Estate Investors, we intend to take the building to the next level of renovation and upgraded tenancy," said Norman Sturner, a principal with Murray Hill Properties. Current plans call for a newly renovated lobby, elevators, windows and a building-wide upgrade of mechanical systems. "This property's layout and amenities present the ideal opportunity for the city's top tier showrooms and can accommodate a full-floor tenant seeking anywhere from 14,000 ft² on a single floor to 42,000 ft² on multiple floors," said Sturner, adding that the building is also "well suited to executive tenants, including financial, legal, advertising and publishing firms."