Newmark Knight Frank’s (NKF) New York Capital Markets team has been exclusively retained by an affiliate of EDGE Fund Advisors and HSBC Alternative Investment Limited to offer for sale a 48% equity interest in 1540 Broadway, a landmark 44-story, 909,000-square-foot trophy office building located in the very center of New York City’s Times Square.
1540 Broadway – formerly known as the Bertelsmann Building and topped by a distinctive, six-story spire – is one of Midtown Manhattan’s truly iconic assets and is located at the northeast corner of Broadway and West 45th Street, at “the crossroads of the world.”
NKF’s Vice Chairman Edward Maher, Senior Managing Director Alex Foshay and Senior Managing Director David Colen will be leading the sale efforts – the first major assignment for the recently expanded New York Capital Markets team. The NKF team in New York, led by Maher, has seen the recent addition of Foshay, who transferred from Knight Frank’s London Capital Markets team.
Best-in-class joint venture partners EDGE Fund Advisors, a Washington, D.C.-based fund operator, and London-based HSBC, retained the NKF team to sell the 48.165 percent joint venture stake in the property. The sale of the interest places it below the FIRPTA tax threshold, which will be a significant tax benefit and attraction to international investors.
1540 Broadway’s anticipated valuation is $925 million, or approximately $1,000 per square foot. At present the asset is 92% leased. It is projected that 1540 Broadway’s net operating income will grow as much as 32 percent in six years as the limited vacancy in the building is leased up and near to medium term rents that are 8-to-10 percent below current market levels are marked to market. The property is currently undergoing a $30 million repositioning set to be completed in 2018, which will modernize the entrances, lobby, elevators, amenities and building systems.
About Newmark Knight Frank
Newmark Knight Frank (NKF) is one of the world's leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NKF's 15,000 professionals operate from more than 400 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NKF's strong foundation makes it one of the most trusted names in commercial real estate. NKF's full-service platform comprises BGC's real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC's common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit www.bgcpartners.com.