Sentry Realty Completes $76M Purchase of 1370 Broadway

The office building at 1370 Broadway officially has new ownership, Commercial Observer can first report. 

Sentry Realty closed on its purchase of the 275,000-square-foot building on Jan. 16, paying roughly $75.5 million, according to sources with knowledge of the deal. Kevin Chisholm‘s 60 Guilders is also part of the ownership group.

Invesco Real Estate was the seller, and the deal was financed with an acquisition loan provided by Fortress Investment Group at a roughly 65 percent loan-to-cost, sources said. 

Newmark’s Adam Spies, Adam Doneger, Josh King, Marcella Fasulo, Avery Silverstein and Doug Harmon arranged the sale, while Newmark’s Jordy Roeschlaub and Nick Scribani, along with Spies and Doneger, negotiated the financing. 

CO broke the news in November that a sale of the Midtown building between West 36th and West 37th streets was in motion and it was expected to trade for roughly $80 million. The final purchase price was slightly less than that, and represented a more than $100 million discount from the $186 million Invesco paid for 1370 Broadway in 2014. 

Invesco financed its purchase with a $75 million loan at the time from Principal Life Insurance, and so sold it for just above the debt.

Sentry Realty’s Alen Mamrout, Joe Mamrout, Shlomo Althkefati and Yossi Althkefati led the deal on behalf of ownership. 

“We are thrilled to announce the acquisition of our third large commercial building in Manhattan within just five months,” a Sentry spokesperson said in an emailed statement to CO. “This milestone underscores our bullish outlook on the commercial real estate market here and our ability to identify and execute strategic opportunities.” 

The spokesperson also credited KSR broker Morris Sabbagh with bringing “two major tenants to the table, securing over 75,000 square feet of occupancy before closing.” 

Sabbagh confirmed his role in pre-leasing 119,000 square feet — seven 17,000-square-foot floors — prior to the closing of the transaction, but didn’t disclose the two tenants’ identities.

Fortress didn’t return a request for comment. Invesco and Newmark declined to comment. 

Cathy Cunningham can be reached at ccunningham@commercialobserver.com