Spear Street Capital Buys SoHo’s 446 Broadway for $52M
By Isabelle Durso September 27, 2024 2:43 pm
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San Francisco-based Spear Street Capital is adding the luxury retail and office building at 446 Broadway in SoHo to its portfolio.
The investment firm bought the five-story, approximately 27,000-square-foot building known as the L’Atelier through the entity 446 Broadway Property Owner for $52 million from KPG Funds, which used the entity 446 Broadway Owner, according to city records made public Wednesday.
KPG Funds founder Gregory Kraut was the listed signatory for the seller, while Spear Street founder and CEO John Grassi signed for the buyer, records show.
Spokespeople for Spear Street and KPG did not immediately respond to requests for comment. Newmark’s David Malawer and Ripco Real Estate’s Richard Skulnik, who are listed on the L’Atelier’s website as its leasing brokers, also did not immediately respond to requests. It’s unclear who brokered the sale.
KPG bought the Broadway property located between Grand and Howard streets in August 2018 for $46.8 million, according to PincusCo, which first reported the sale. KPG redeveloped the building into luxury offices after signing a $51 million refinancing loan with Ladder Capital in April 2022, PincusCo reported. Spear Street has assumed a debt on that loan.
While based on the West Coast, Spear Street currently has two other properties in Manhattan: 635-641 Avenue of the Americas, which it bought for $325 million from SL Green Realty in 2021, and 2 Crosby Street in SoHo, according to Crain’s New York Business. The firm has also purchased and sold 315 Park Avenue, Crain’s reported.
Current tenants of 446 Broadway include goods store Rumi Life, which leases retail space on the ground floor; video editing service Cabin Editing Company, which is in office space on the fifth floor; and online collectibles platform Rally, which signed a 9,911-square-foot lease at the building in 2022 for both retail space and its office headquarters.
Isabelle Durso can be reached at idurso@commercialobserver.com.
