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REA
November 15, 2017  

Invesco Snags Majority Stake in 80 Broad St.

Invesco Real Estate has agreed to buy a majority interest in the office building at 80 Broad Street in Lower Manhattan from investor Raymond Chalme.

The exact size of Invesco’s stake is unclear, but market pros said it is at least 90%. The transaction values the 423,000-square-foot property at roughly $235 million, or $555/sf.

Chalme, who operates via Broad Street Development of New York, will retain the remaining interest and continue to manage the Class-B building. Cushman & Wakefield is brokering the transaction.

Invesco has acquired stakes in two other Manhattan office buildings over the past few years. The Dallas investment manager bought a 45% stake in the 2.7 million-sf tower at 1221 Avenue of the Americas last year from Canada Pension Plan for about $1.1 billion. In 2015, Invesco paid $220 million for an 80% interest in the 68,000-sf retail/office property at 131-137 Spring Street.

The 36-story building at 80 Broad, in the Financial District, is nearly fully occupied. The tenants include interior design supplier Robert Allen Group, law firm McGivney & Kluger, BTQ Financial, Demos, FGI, Imaginary Forces, Kenshoo and Natural Resource Governance Institute, according to CoStar.

The property, at the southwest corner of Stone Street, dates to the 1930s. In 2011, Savanna Investment of New York took it over from investor Kent Swig after buying a defaulted $75 million mortgage for 89 cents on the dollar, or $66.3 million. Chalme bought the building from Savanna for $173 million, or $409/sf, in 2014. At the time, the occupancy rate was 89%. After making renovations, Chalme boosted occupancy by targeting small firms in the technology, advertising, media and information sectors.