Normandy Real Estate Partners has acquired 1370 Broadway, a 17-storey office building in New York’s Times Square.
According to information from data provider Real Capital Analytics, the Morristown, New Jersey-based real estate investment firm has purchased the 280,000 square-foot asset from a joint venture between Sitt Asset Management and the Sutton Family for $123.8 million. Although Normandy declined to comment, sources familiar with the matter have confirmed that the asset was purchased on behalf of Normandy Real Estate Fund II, its $350 million value-added real estate vehicle.
Gavin Evans, a principal at Normandy Real Estate Partners, said in a statement: “This area offers a great opportunity to leverage our operating platform to take advantage of the resurgence of this neighbourhood and with our business plan improve the building’s profile in the market.”
Normandy will most likely assume the first mortgage collateralised by the property. The securitized loan, originated by Wachovia in 2005, has an outstanding balance of $57.6 million and matures in 2015.
The property is currently 78 percent occupied, with tenants including financial services firm Rosenthal & Rosenthal, office suite provider Jay Suites and apparel manufacturer and retailer Esprit.
Eastdil Secured represented the sellers in the transaction.
Separately, sources have told PERE that Normandy is amidst raising capital for its third commingled real estate fund. Normandy Real Estate Fund III is seeking $500 million to target value-added US office properties primarily in New York, Boston and Washington DC.