The Peebles Corporation has closed on the $160 million purchase of 346 Broadway in Tribeca, making it the largest single building sale in the New York City Economic Development Corporation’s history, The Commercial Observer has learned.
Peebles will partner with Elad Group to redevelop the landmarked building, with plans to transform the 419,000-square-foot space into a luxury residential building, with Peebles serving as operating member of the joint venture and ownership structured equally between the two entities.
“This is our first acquisition and development in New York City and we’re very excited and honored to be entrusted with this iconic, landmarked building,” said Don Peebles, head of the firm. “We plan to restore it to its original grandeur and make it compatible with contemporary lifestyles in Manhattan, redefining residential in the area.”
Plans under consideration include a roughly 15,000-square-foot community space, characterized by visual arts and planned as an outlet for emerging artists, luxury condo units, a potential five star boutique hotel and personalized parking spaces.
Elad previously restored the The Plaza Hotel and 250 West Street in Tribeca, allowing the firm to stick out from the pack.
“We had tremendous options for capital and [joint venture] partners and Elad was the absolute best fit for us and this project,” Mr. Peebles said. “They have had tremendous success in restoring these globally recognized, landmark buildings… and that’s similar to the plan we have at 346 Broadway.”
Demolition of the interior will begin in mid to late summer of 2014, with a planned delivery of early 2016.
The total development costs, including acquisition, will exceed $400 million, sources familiar with the project indicated.