Bobby Zar’s ZG Capital Lands $215M CMBS Refinance for 1450 Broadway
By Cathy Cunningham August 25, 2021 5:55 pm
reprints
Bobby Zar’s ZG Capital Partners has sealed a $215 million refinance for its office property at 1450 Broadway, Commercial Observer has learned.
Bank of Montreal (BMO (BMO)) provided the commercial mortgage-backed securities (CMBS) loan, which will be securitized in a single-asset, single-borrower (SASB) transaction, sources said. The five-year, interest-only floater retires a balance sheet loan on the property, provided by Goldman Sachs in 2018.
The deal closed Wednesday afternoon.
The financing was arranged by Newmark (NMRK)’s Dustin Stolly and Jordan Roeschlaub, vice chairmen and co-heads of the brokerage’s debt and structured finance team, along with Newmark Senior Managing Director Daniel Fromm.
The 439,785-square-foot property — which sits between 40th and 41st streets, close to both Times Square and Bryant Park — is anchored by WeWork. It features 17,000-square-foot, base floor plates and boasts 360-degree views of Manhattan from floor-to-ceiling windows.
Sixteen of its 42 stories offer full-floor layouts that span 4,200 square feet and are aimed at smaller tenants, with views to the north, west and south. Several office suites include private terraces, offering building tenants outdoor space — more coveted than ever before, following the pandemic.
ZG Capital Partners — an affiliate of The Zar Group that’s led by Bobby Zar and James Tamborlane — acquired 1450 Broadway for $204 million in 2011 from a joint venture between The Moinian Group, Chetrit Group and Edward J. Minskoff Equities. The building underwent a sweeping renovation in 2018, with the firm adding a new MdeAS Architects-designed lobby, new elevators and a new tenant-controlled HVAC system.
In addition to its location at the heart of Manhattan’s office and retail submarkets, the office building is conveniently located close to Penn Station, the Port Authority Bus Terminal and Grand Central Station.
Further downtown, ZG Capital Partners acquired 654 Broadway, a six-story, mixed-use building in the NoHo neighborhood of Manhattan, for $10 million in May.
Officials at ZG Capital Partners, BMO and Newmark did not return requests for comment.
Cathy Cunningham can be reached at ccunningham@commercialobserver.com.
