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.

For more news and information visit Blumberg Capital Partners.

Chicago's Burnham Center Sold for $95M

Harbor Group International announced that it had sold The Burnham Center in downtown Chicago for $94.63 million to the Shidler Group. Terms of the deal for the 579,778-square-foot office tower were not disclosed.

"When Harbor Group invests in a property, we have a business plan that... will allow us to sell the property in a four- to six-year period," said T. Richard Litton Jr., the company's president. "Our goal was to improve leasing on the larger floor plate, lower floor portion of the building. We generally succeeded in our business plan on the lower floors and felt that market conditions warranted a sale at this time."

The 22-story historic building at 111 West Washington Street was originally built in 1914 and designed by Daniel H. Burnham. Major tenants include Flashpoint, Cook County and GrubHub. Harbor Group originally purchased the property in March 2007 for $79.5 million.

For more news and information visit Blumberg Capital Partners.

Harbor Group Acquires Nashville Portfolio for $130.5M

Harbor Group International (HGI) announced this week that it had acquired a four-property multifamily portfolio in Nashville, TN for $130.5 million. According to the Nashville Business Journal, affiliates of Norfolk, Va.-based Harbor Group International purchased the four apartment communities from a Lehman Brothers subsidiary in a deal brokered for the seller by Jones Lang LaSalle. The portfolio includes:

Cherry Creek, 627 units
Arbors of Brentwood, 346 units
Cambridge at Hickory Hollow, 360 units
Preakness, 260 units

"The acquisition of the Portfolio continues HGI's proven strategy of acquiring well-located apartment portfolios with value add and operational upside in improving markets," said T. Richard Litton, Jr., President of HGI. "All four properties have occupancy levels above 90% and are poised to realize increased revenues as we implement our capital program and the Nashville market continues to improve," he further commented.

For more news and information visit Blumberg Capital Partners.