Harbor Group Sells Broadway Tower for $250M

Harbor Group International, the Norfolk, Virginia-based commercial real estate investment firm, has sold 1412 Broadway in New York City for $250 million to various entities controlled by Isaac Chetrit. The sale price marks a windfall as Harbor Group originally purchased the property from MHP Real Estate Services in December 2010 for $150 million, with another $10 million invested in property renovations. CBRE represented Harbor Group in the transaction; terms of the deal were not disclosed. Harbor Group also recently entered contract to buy the 361,000-square-foot office building One Exchange Plaza in the Financial District from Broad Street Development for $157 million, as The Real Deal reported Monday.

"Harbor Group did a tremendous job repositioning the asset to benefit from the escalating demand in the area from fashion and TAMI tenants," said Darcy Stacom, Vice Chairman and Partner at CBRE Group, Inc.

"When we purchased the property, our investment thesis was based on the projected rapid growth of the Times Square submarket," Harbor Group President T. Richard Litton said in a release. "Our predictions proved accurate, as the market lived up to our expectations."

The 24-story, 415,135-square-foot office tower was 97% leased at the time of sale, with major tenants including Jones New York, One Step Up, Escada USA, OuterStuff, Securitas Security Services and Provident Bank. The tower is one block from the Times Square subway and close to Penn Station, Grand Central Terminal, and the Port Authority. The buyer has retained CBRE to handle leasing at the building.

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