After purchasing a controlling interest in 1540 Broadway last fall, a joint venture between HSBC Alternative Investments Limited (HAIL) and EDGE Fund Advisors has bought another New York office tower.
The alternative investment arm of HSBC and the Washington, DC-based real estate investment management firm acquired 4 New York Plaza in Manhattan’s financial district. The firms purchased the 22-storey, 1.1 million-square-foot office tower from a joint venture between Harbor Group International (HGI) and Capstone Equities. Data provider Real Capital Analytics lists the sale price as $270 million.
HAIL and EDGE acquired the property on behalf of the HSBC Club Programme, which also owns 1540 Broadway in New York and 1625 I Street, NW and 1350 I Street, NW in Washington DC.
EDGE chief executive officer Mark Keller said in a statement: “We have an enormous amount of confidence in the revitalisation of downtown Manhattan. Four New York Plaza is in close proximity to the World Trade Center development and transportation hub, which is the epicentre of this activity.”
Christopher Allen, CEO of HAIL, added: “Since founding the HSBC Club Programme three years ago, we have acquired more than $1.3 billion in trophy office properties in the US. The programme provides HSBC clients with direct exposure to otherwise inaccessible opportunities globally.”
Various media reports reveal that HGI purchased 4 New York Plaza from JPMorgan Chase for $107 million in January 2010. The building currently is 95 percent leased. In addition to JPMorgan Chase, which occupies 800,000 square feet in the property, other tenants include the Daily News and American Media Operations. CBRE, which represented the seller in the transaction, has been retained to provide property management and leasing services.
This acquisition by HAIL and EDGE follows the announcement in September 2011 that the joint venture purchased the remaining ownership stake in 1540 Broadway from Richard Ellis for $423.5 million, after owning nearly half of the midtown Manhattan trophy office tower for almost one year.
HSBC, EDGE buy NYC tower for $270m
The joint venture that bought 1540 Broadway last year has made another purchase in Manhattan on behalf of the HSBC Club Programme.