Starwood Capital Buys 1372 Broadway
Daniel Edward Rosen June 12, 2012, 9 a.m.
Greenwich-based investment firm Starwood Capital Group has agreed to purchase 1372 Broadway from Lloyd Goldman’s BLDG Management, it was announced yesterday.
The 21-story, 571,667-square-foot building is located on 37th and Broadway. Final terms of the deal were not disclosed. A spokesman for Starwood Capital Group declined to comment on the specifics of the deal.
Lloyd Goldman purchased the building in 2008 for $275 million, just one year after Wachovia bought an 85 percent share of the building for $285 million.
Starwood Capital Group purchased the building on behalf of Starwood Distressed Opportunity Fund IX.
In a statement, Chris Graham, Managing Director of Acquisitions at Starwood Capital Group, said it was “pleased” to purchase the office building due to the “limited new construction in New York City.”
“We believe this is an exceptional investment due to its high double-digit cash-on-cash returns on our fund equity over our anticipated hold period, supported by the length of the leases and credit of its tenant,” he added.
The building counts Ross Dress for Less, IBEX Construction and Exact Advertising LLC among its clients, according to CoStar data.
“We are excited to purchase a strong rent roll in one of the best office markets with rents close to market lows at a significant discount to replacement cost,” said Marcos Alvarado, Senior Vice President at Starwood Capital Group, in a statement.
Starwood Capital Group has invested $12 billion and has over $19 billion under management.