THE roiling credit markets didn’t keep Broadway Partners from closing on its purchase of 280 Park Ave. from Istithmar for $1.278 billion.
Broadway also brought in building tenant Investcorp as a 50 percent partner in a deal that included taking over the Wells Fargo mortgage financing with a face value of $440 million and paying Istithmar $899.8 million.
The twin-towered office building has a 31-story and a 43-story building connected by a 14-story mid-rise.
The 1.2 million foot complex houses tenants that include Deutsche Bank, Credit Suisse First Boston, the National Football League and Investcorp.
Investcorp operates its US real estate, private equity, hedge fund, and technology investment activities in 51,000 feet on five floors.
Over the last few years, Jonathan Dracos, co-head of Investcorp’s real estate group, has completed a series of deals around the country with Broadway’s Scott Lawlor.
One Saturday night they were having dinner with their wives in Greenwich, Conn., and the pending deal naturally surfaced.
Broadway was already in contract for the building and by dessert the two men had agreed to pursue further talks the following Monday morning.
The deal closed on the Monday before Thanksgiving.
In June 2006 Istithmar had purchased the building from Daily Snooze owner Mort Zuckerman‘s Boston Properties for $1.2 billion – about the same price.
But then in April, along with this deal, Istithmar, an investment vehicle owned by the Dubai royal family, also contracted to sell the 1.2 million foot 230 Park Ave. to Monday Properties and Goldman Sachs for $1.15 billion.
Island Capital, led by Andrew Farkas has been investing with and advising the Arab Emirate and the spring contracts shook up the investment community, which worried if the end was near.
Were they right? Prices have certainly fallen since then but Dracos said they are happy campers.
“We’ve been looking in New York and around the country for quality and this asset is consistent with best in class,” Dracos said.
Rents at 280 Park are running $90 to $130 a foot depending on size and placement and CB Richard Ellis will continue its leasing assignment.
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In another deal signed back in April, Richard Berry and Anthony Zunino‘s Zuberry Development Corp. and Douglas Durst have finally closed on their sale of 641 Avenue of the Americas for $85 million to Jeffrey Goldberger of Atlas Capital Group.
Brokers Brian Ezratty and Peter Hauspurg of Eastern Consolidated finally convinced the sellers the timing was right.
But it still took seven months to close the deal due to a defeasance issue and a lock out on the mortgage.
“A couple of months after we signed it the market crept up but by the time we closed it was down where we had started,” said Ezratty on the ups and downs of the local investment market.
“Average rents are cheap by comparison to today’s market so [to make more money the buyers] will have to wait for the leases to roll over,” he said.
At $540 a foot the deal was made at a capitalization rate of 4.75 percent.
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The Russian developer Coalco has corralled another conversion.
Already known for projects like 30 Crosby St. and the Element at 555 W. 59th St., the company – led by wealthy Chairman Vassily Anisimov, who’s the father of party princess Anna Anisimov – has now purchased 250 West St. from El-ad Group for $201 million.
Apparently El-ad, which recently imploded the famed Frontier Casino on the Las Vegas strip, is now too busy with that project and with the famed Plaza to concentrate on the smaller ones in its portfolio.
El-ad just bought this conversion play back in June of 2006 for $142 million.
Cushman & Wakefield’s Richard Baxter, Ron Cohen, Scott Latham and Jon Caplan handled the marketing.
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Designer Tory Burch may be picky when it comes to dating guys like ex Lance Armstrong and current paramours Brad Grey and Tom Werner, but she’s definitely made a choice as to where to re locate her clothing company.
The sportswear and accessories de signer signed a 10-year lease for 25,324 feet of show room and office space at 11 West 19th St., which had an asking rent of $49 a foot.
Grant Greenspan and Michael Kaufman of the Kaufman Organization represented the ownership, while John Brod and Laura Pomerantz of PBS Realty Advisors represented the tenant in the transaction.
Burch will be moving from 99 Madison Ave. in December.
