Jones Lang LaSalle
Broad Street Buys NYC Building for $97.2M
April 11, 2006
By Colleen Corley, News Writer
La Salle's Income & Growth Lexington L.L.C. has sold 370 Lexington Ave. (pictured), a 27-story, 296,000-square-foot office building in New York City's Midtown submarket for $97.2 million. Broad Street Development and Crow Holdings Realty Partners IV acquired the building, despite its almost-unheard-of 15 to 20 percent vacancy rate, explained Daniel Blanc, executive vice president of Broad Street Development.
"(The) Midtown marketplace is very robust right now, and the tenancies we're trying to attract--the 3,000- to 5,000-square-foot tenants--(are) one of the most deep markets," he told CPN this afternoon. The company plans to spend "significant capital" on infrastructure and the building's lobby to fill the remaining space.
Yet the vacancy is surprising in a market with an average vacancy of just 7.2 percent, according to a March 2006 report from Colliers International. But at $328 per square foot, the price remains competitive with the submarket and justified by the building's location just one block from Grand Central Station, Blanc noted. "It's an underutilized, under-marketed asset that's just right for repositioning," he explained. "It's capital and time. You have to spend a lot (it) on these things."
CB Richard Ellis Inc. negotiated the transaction.
Broad Street Buys NYC Building for $97.2M
April 11, 2006
By Colleen Corley, News Writer
La Salle's Income & Growth Lexington L.L.C. has sold 370 Lexington Ave. (pictured), a 27-story, 296,000-square-foot office building in New York City's Midtown submarket for $97.2 million. Broad Street Development and Crow Holdings Realty Partners IV acquired the building, despite its almost-unheard-of 15 to 20 percent vacancy rate, explained Daniel Blanc, executive vice president of Broad Street Development.
"(The) Midtown marketplace is very robust right now, and the tenancies we're trying to attract--the 3,000- to 5,000-square-foot tenants--(are) one of the most deep markets," he told CPN this afternoon. The company plans to spend "significant capital" on infrastructure and the building's lobby to fill the remaining space.
Yet the vacancy is surprising in a market with an average vacancy of just 7.2 percent, according to a March 2006 report from Colliers International. But at $328 per square foot, the price remains competitive with the submarket and justified by the building's location just one block from Grand Central Station, Blanc noted. "It's an underutilized, under-marketed asset that's just right for repositioning," he explained. "It's capital and time. You have to spend a lot (it) on these things."
CB Richard Ellis Inc. negotiated the transaction.
posted by Jones Lang LaSalle NJ News Blog at 10:51 AM
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