Purchase of Thor Equities’ 530 Bway Closes at $326M [Updated]
Lauren Elkies Schram March 19, 2014, 3:51 p.m.
A joint venture led by Jeff Sutton’s Wharton Properties has nabbed a three-building site at 530 Broadway from Joseph Sitt‘s Thor Equities for $326 million. The sale closed on March 6 and appeared in public records today.
The retail mogul bought the 11-story property to extend his dominance in Soho. It hit the market in February 2013 and Mr. Sitt agreed to sell it to the new owners that September.
Meridian Capital Group arranged $200 million in acquisition financing from Morgan Stanley for the office and retail property. The New York-based mortgage brokerage firm secured the financing on behalf of the joint venture, which includes SL Green Realty Corp.
The three-year financing features a “competitive Libor-based spread” and two, one-year extension options, a Meridian spokesperson said without naming the lender.
The 40,000-square foot property, located at the corner of Spring Street, is made up of three interconnected buildings. Eastern Mountain Sports occupies the ground-level retail space.
The three buildings sit across the street from 529 Broadway where another partnership consisting of Wharton Properties, Aurora Capital Associates and Thor Equities is constructing a 34,000-square-foot retail building.
Meridian’s Ronnie Levine and Tal Savariego negotiated the acquisition financing.
“530 Broadway not only has an irreplaceable location but its sponsorship is uniquely positioned to execute a value-add strategy over time and capture additional upside from the asset,” Mr. Savariego said.
Eastdil Secured‘s Douglas Harmon and Adam Spies marketed the property. Messrs. Harmon and Spies weren’t immediately reachable for comment, and nor was Mr. Sitt.
Update: This story was edited to include financing information.