HSBC Alternative Investments, along with Edge Fund Advisors, have reportedly paid $270 Million for 4 New York Plaza, the Lower Manhattan home of the New York Daily News and JP Morgan Chase & Co.
The partnership between an HSBC entity, HSBC Club Programme, and the Washington D.C.-based Edge Fund Advisors will take control of the 1,084,528-square-foot, 22-story property, which also counts OK! Magazine and American Media, Inc. as tenants.
“Our purchase of 4 New York Plaza is testament to the value we envision from the rebirth of the downtown market,” Mark Keller, the CEO of Edge Fund Advisors, said in a statement.
Harbor Group International, a Norfolk, Virgnia-based real estate investment firm, had sold the building after it purchased 4 New York Plaza at the “bottom of the cycle.”
“At the time we bought the building, I don’t think investors were as bullish on downtown as they are now,” Jordan Slone, CEO of Harbor Group International, told Bloomberg. Mr. Slone cited Conde Nast’s 1 million-square-foot lease deal at 1 World Trade Center as a pivotal moment in the market that transformed Downtown as a “focus for investors, which 2 1/2 years ago, it wasn’t.”
Harbor Group was represented by a CBRE team lead by Darcy Stacom and William Shanahan. They did not return phone calls requesting comment.
Calls to Mr. Slone and to Mr. Keller were not immediately returned.
Harbor Group purchased the building for $107 million in 2010, according to reports.
The NY Daily News took 100,000 square feet in 4 New York Plaza in 2010, relocating from its headquarters at 450 W. 33rd Street. American Media took 100,000 square feet in the building in 2011. JP Morgan has nearly 800,000 square feet in the lower Manhattan building, according to CoStar.