Recent News
Broad Street Development Nabs Two Mulberry Street Properties for $178.5M
BY DANIELLE SCHLANGER 12/22 3:47PM

Broad Street Development, in conjunction with investment partner Crow Holdings, acquired two multi-family buildings on Mulberry Street in Soho for $178.5 million, according to a press release issued by Broad Street Development.

The properties, 298 Mulberry Street and 304 Mulberry Street, between East Houston Street and Bleecker Street, collectively include 182 apartments and 11,825 square feet of ground-floor retail space with frontage on Houston and Mulberry Streets. GID Investment Advisors, a Boston-based firm, sold the properties. It was not immediately clear how how much GID Investment Advisors paid for the property or when it was purchased.

“The acquisition of the Mulberry Street portfolio will provide us with the ideal opportunity to bring our targeted investment strategy and hands-on ownership style to these assets, and to duplicate the great success we’ve had with both our rental and condominium residential projects,” said Raymond Chalme, the principal of Broad Street Development, in prepared remarks.

The properties, 298 Mulberry Street and 304 Mulberry Street, between East Houston Street and Bleecker Street, collectively include 182 apartments and 11,825 square feet of ground-floor retail space with frontage on Houston and Mulberry Streets. GID Investment Advisors, a Boston-based firm, sold the properties. It was not immediately clear how how much GID Investment Advisors paid for the property or when it was purchased.

GID Investment Advisors was represented by HFF’s Andrew Scandalios, Jeffrey Julien andRob Hinckley in negotiations.

Mr. Scandalios did not immediately return a request for comment. Mr. Julien declined to comment on the sale.

Wachtel Missry’s Eli Dweck represented Broad Street Development in the transaction.

This is far from the only big purchase made by Broad Street Development this year. This past September, Commercial Observer reported on Broad Street Development’s acquisition of 80 Broad Street, a 423,000-square-foot property in the Financial District, for $173 million.

Broad Street Development, Crow Holdings Complete $178.5 Million Mulberry St. Acquisition
Joint Venture Acquires Two Multifamily Bldgs. Totaling 182 Units in NoHo
By Lea Brumfield December 22, 2014

Broad Street Development (BSD) acquired two multifamily buildings located at 298 Mulberry St. and 304 Mulberry St. in the NoHo submarket of Manhattan. Along with investment partner Crow Holdings, the investor and developer purchased the portfolio from GID Investment Advisors for $178.5 million, or approximately $1,144 per unit.

The portfolio incorporates 182 studio to three-bedroom apartments, 11,825 square feet of at-grade retail space and an on-site parking garage. Positioned across from the historic Puck Building, the properties sport frontage along Mulberry and Houston streets and are serviced by the B, D, F, M, and 6 trains as well as several bus routes.

BSD and Crow Holdings intend to invest $3.5 million in capital improvements towards new windows, new roof and roof decks, lobby renovations, interior enhancements, and upgrades to individual units.

The acquisition follows up BSD's successful 215 Sullivan St. condominium project, which saw the ground-up development sell out in four months this past summer for prices exceeding $3,000 per square foot. The deal also marks the company's return to residential investing after recently acquiring the 423,000-square-foot 80 Broad St. office tower in the city's financial district for $173 million.

The HFF sales team of Andrew Scandalios, Jeffrey Julien and Rob Hinckley represented GID Investment Advisors, while Eli Dweck of Wachtel Missry represented the acquiring venture. Mike Tepedino, Michael Gigliotti and Sam Nidenberg of HFF arranged financing through Michael Eglit and Michael Henry of Blackstone for 304 Mulberry St., and Rob Dirks of Principal Real Estate Advisors for 298 Mulberry St.

Broad Street Makes Rental Buy on Mulberry Street
12.22.14

NEW YORK CITY—Broad Street Development and investment partner Crow Holdings have acquired a pair of multifamily properties at the crossroads of Manhattan’s Greenwich Village, Soho and Noho neighborhoods. The partnership paid $178.5 million to buy 298 and 304 Mulberry St. from Boston-based GID Investment Advisors.

BSD has seen success recently in the same neighborhood with its 215 Sullivan St. residential condominium project, which sold out within four months. “The acquisition of the Mulberry Street portfolio will provide us with the ideal opportunity to bring our targeted investment strategy and hands-on ownership style to these assets, and to duplicate the great success we’ve had with both our rental and condominium residential projects,” says BSD principal Raymond Chalme.

Located across the street from the landmark Puck Building, the buildings at 298 and 304 Mulberry include 182 rental apartments, 11,825 square feet of prime ground floor retail space with full frontage on both Houston and Mulberry Streets and an on-site parking garage. BSD and Crow Holdings see “a great opportunity to add value to these assets by enhancing the product and meeting the market’s strong rental demand,” Chalme says.

BSD and Crow Holdings will immediately launch a $3.5-million renovation campaign aimed at both aesthetic and operational improvements. Among toher renovations, the partnership plans the installation of new windows, new roof and roof decks, the redesign and renovation of the lobbies, modernization of interior areas, and upgrades to individual homes, including kitchens and bathrooms.

BSD buys $178M Mulberry portfolio
By rew 1:00 AM, DECEMBER 23, 2014

Broad Street Development (BSD) has acquired 298 Mulberry Street and 304 Mulberry Street, two multi-family buildings with 182 apartments, with investment partner Crow Holdings, a national real estate investment fund.

The partnership acquired the two-property residential portfolio for $178.5 million from GID Investment Advisors LLC.

This acquisition comes on the heels of BSD’s success at its 215 Sullivan Street condominium project nearby. The ground-up development sold out in four months over the summer at record-breaking Greenwich Village prices exceeding $3,000 psf.

“The acquisition of the Mulberry Street portfolio will provide us with the ideal opportunity to bring our targeted investment strategy and hands-on ownership style to these assets, and to duplicate the great success we’ve had with both our rental and condominium residential projects,” said Raymond Chalme, principal of BSD, which celebrates its 10th anniversary in January.

“Given our intimate knowledge of this neighborhood and our respect for its historic standing and desirability, we see a great opportunity to add value to these assets by enhancing the product and meeting the market’s strong rental demand.”

BSD and Crow Holdings will embark on a $3.5 million renovation campaign comprised of aesthetic and operational improvements to maximize the portfolio’s value. The properties are located at the crossroads of Manhattan’s Greenwich Village, Soho and Noho neighborhoods, just across the street from the Puck Building.

The buildings at 298 and 304 Mulberry Street consists of 182 apartments, 11,825 s/f of ground floor retail space with full frontage on both Houston and Mulberry Streets, and an on-site parking garage.

The seller was represented by the HFF sales team of Andrew Scandalios, Jeffrey Julien and Rob Hinckley.

Mike Tepedino, Michael Gigliotti and Sam Nidenberg of HFF arranged financing, with Michael Eglit and Michael Henry of Blackstone for 304 Mulberry Street and Rob Dirks of Principal Real Estate Investors for 298 Mulberry Street. Eli Dweck of Wachtel Missry LLC, represented BSD in the acquisition.

BSD’s recent successes in the residential property arena include the record-breaking sales achieved at 215 Sullivan Street and the successful condominium conversions of 140 homes at 184 Thompson Street and 100 luxury condominium homes at Maison East.

BSD also handles management and leasing at its Gramercy Portfolio consisting of 208 units between two buildings on 22nd Street. BSD is also a force in the commercial real estate industry. This fall, the company acquired the office tower at 80 Broad Street for $173 million and it about to embark on a major capital improvement campaign.

The purchase followed the successful repositioning and subsequent sale of 55 Broadway and 61 Broadway, for nearly a combined $500 million in 2014.

“Ten years ago, we promised to build a unique real estate business, focused on creating value through hard work, attention to tenants’ needs, excellent workmanship and design, and belief in the Downtown market,” said Daniel Blanco, a BSD principal.

“Today, as we look at our portfolio and our track record, we know we can celebrate our 10th anniversary with great pride at the fulfillment of our promise, and look to a future that builds on this commitment.”

December 22, 2014

Broad Street Development purchased two Noho apartment buildings for a combined $178.5 million.

The properties sit across the street from the Puck Building at 298 and 304 Mulberry Street in Noho. They buildings house 182 apartments, 11,825 square feet of ground floor retail facing Mulberry and Houston Streets, and a parking garage.

HFF’s Andrew Scandalios, Jeffrey Julien and Rob Hinckley represented GID in the transaction. Mike Tepedino, Michael Gigliotti and Sam Nidenberg of HFF arranged financing, with Michael Eglit and Michael Henry of Blackstone for 304 Mulberry Street and Rob Dirks of Principal Real Estate Investors for 298 Mulberry Street.

Eli Dweck of Wachtel Missry represented Broad Street in the transaction.

The buyers are immediately embarking on a $3.5 million renovation, which will include new window installations, new roofs and roof decks, lobby redesigns, modernization of interior areas, and upgrades to kitchens and bathrooms, according to a release.

“Given our intimate knowledge of this neighborhood and our respect for its historic standing and desirability, we see a great opportunity to add value to these assets by enhancing the product and meeting the market’s strong rental demand,” said Broad Street principal Raymond Chalme in a statement.

Broad Street made the purchase with its investment partner Crow Holdings, a national real estate investment fund. The seller was Boston-based GID Investment Advisors.

Earlier this year, Broad Street sold out 25 units at prices upwards of $3,000 per square foot at its nearby 215 Sullivan Street in Greenwich Village in just four months.– Tess Hofmann

Harbor Group in contract to buy 55 Broadway for $157M
Seller Broad Street Development bought the office site for $82M in 2006
3.10.2014

Virginia-based private real estate investment firm Harbor Group International is in contract to buy the 361,000-square-foot office building One Exchange Plaza in the Financial District from Broad Street Development, The Real Deal has learned.

Daniel Blanco — a principal at Broad Street Development, which develops, owns and manages properties — bought the 31-story building at 55 Broadway in 2006 for $82 million, property records show. The property, located near Exchange Place Alley, is now expected to sell for about $157 million, or nearly $440 per square foot, a source said.

Jones Lang LaSalle’s New York City Capital Markets Group of Richard Baxter, Jon Caplan, Yoron Cohen and Scott Latham have the listing.

Tenants in the building include news nonprofit ProPublica, the Cancer Research Institute and a FedEx Office shipping center.

Blanco could not be immediately reached for comment. Broad Street Development is currently building 25 luxury condos at 209 Sullivan Street, formerly the home of the Children’s Aid Society, as The Real Deal reported.

Harbor Group, led by Jordan Slone, bought a 46-unit rental building on the Upper East Side for $20.5 million last July, as previously reported. Aside from Norfolk, Va., the firm, which declined to provide a comment, has offices at 1412 Broadway in Midtown, and in Israel.

Historic downtown tower fetches $330M
In its first foray into the financial district, RXR Realty has purchased the 33-story office building at 61 Broadway.
3.27.2014

Big league commercial landlord RXR Realty is finally making its entry in lower Manhattan. The firm is in contract to buy 61 Broadway, a 33-story, 787,000-square-foot office tower on the corner of Exchange Place for $330 million.

The real estate firm, led by chief executive Scott Rechler, has been one of the busiest buyers of commercial property in the city, but while it got close to a large downtown acquisition last year, the deal for 61 Broadway is the company’s first in the neighborhood.

RXR Realty is buying the 98-year-old property from Broad Street Development, a company operated by Raymond Chalme and Daniel Blanco. That duo also recently sold a building just down the street at 55 Broadway to Harbor Group. That one fetched $157 million.

Late last year, RXR Realty was one of the finalists in the bidding war for One Chase Manhattan Plaza, the 60-story, 2.4 million-square-foot former home of Chase Manhattan Bank in the heart of the Financial District. In that contest RXR lost out to China-based Fosun.

RXR Realty is also shopping around in the outer boroughs, where it just acquired a long term leasehold of 470 Vanderbilt Ave., an office building near Atlantic Yards at the edge of downtown Brooklyn.

But downtown has remained an attractive place for investment. Tenants have flocked to the area from midtown and midtown south because lower Manhattan’s rents are comparatively cheaper. And the years-long process of upgrading the area’s transit infrastructure at the Fulton Street Transit Center and the World Trade Center PATH hub is almost done.

Sources familiar with 61 Broadway said that a large portion of its leases expire in the near term, which will allow RXR Realty to improve the property. The plan, these sources said, is to appeal to tech and creative companies being pushed out of midtown south by offering them lower cost rents.

A brokerage team from Jones Lang LaSalle led by Richard Baxter, Jon Caplan, Ron Cohen and Scott Latham handled the sale of 61 Broadway for Broad Street Development. The four brokers also sold 55 Broadway for the company.

Realty Check: 80 Broad St. scores a triple
6.30.2014

Reflecting the momentum in downtown’s commercial market, 80 Broad St. is selling for more than three times what its current owner paid three years ago.

Broad Street Development, led by Raymond Chalmé and Daniel Blanco, has a “hard” contract to buy the 36-story, 430,000 square-foot, Art Deco-detailed prewar office property from Savanna Investment Fund for $175 million — in the low $400s a square foot.

Savanna took control of 80 Broad St. in 2011, when it purchased the senior mortgage at a 12 percent discount on its $75 million face value.

Eastdil Secured’s Doug Harmon and Adam Spies brokered the sale to Broad Street for Savanna, after fielding what a source called “aggressive” offers by local and foreign investors. Eastdil and Savanna declined to comment.

An elated Chalmé noted that the impending purchase “brings Broad Street back to Broad Street.” His company recently sold 55 Broadway in the mid-$400s per-square-foot range and 55 Broadway for nearly $500 a square foot.

“After that, people thought we’d pack it up and sit on the beach,” chuckled Chalmé.

He credited Savanna with “an outstanding job cleaning up” 80 Broad St. “It needed new infrastructure and it was impacted by Hurricane Sandy.” Savanna moved electrical and mechanical systems out of future harm’s way to the second floor, and re-tenanted the address to 89 percent occupancy.

Chalmé said that as some leases roll over the next few years, 80 Broad St. will draw such new tenants as tech firms that want to go beyond the “incubator” stage.

The city’s first Charlie Palmer Steak restaurant will open in September at Charles S. Cohen’s 3 E. 54th St., replacing Rothmann’s steak house, which has closed. The 3,500 square-foot space will seat nearly 190 beef-lovers.

Although modern-American master Charlie Palmer first achieved fame at the original Aureole on East 61st Street, he’s cut a wider profile outside the city, despite launching a larger, Michelin-starred Aureole on West 42nd Street. His Charlie Palmer Group runs 11 restaurants around the US, including steak spots in Washington, DC and Las Vegas.

But he’s re-taken Manhattan with a vengeance. “We’ve been searching for a location for Charlie Palmer Steak in New York for quite a few years,” said Palmer. Lease terms were not released.

The new beef palace will boast lots of natural light and brighter trim to set off dark wood and leather, and floor-to-ceiling front windows.

Palmer will also run the restaurants at the soon-to-open Knickerbocker Hotel on 42nd Street and next week launches Crimson & Rye in the Lipstick Building.

At another Cohen property, the D&D Building on Third Avenue, he’s turning cafe/event space Astra into larger Upper Story.

Everyone knows that Bank of New York Mellon received big state tax incentives to keep its headquarters in Lower Manhattan. BNY will move from 1 Wall St., which it’s selling, to 225 Liberty St. at Brookfield Place.

Of course, New Jersey also offered BNY the moon and maybe more. Sources credited Gov. Andrew Cuomo with a major role in persuading BNY not to cross the Hudson.

But an additional prod to stay apparently came from Washington.

Sen. Chuck Schumer, a senior member of both the powerful Banking and Finance committees, told us that convincing BNY Mellon not to bolt wasn’t merely a “campaign,” but “almost a crusade” on his part.

“I met with their CEO Gerald L. Hassell,” Schumer said.

“I’ve had a long relationship with them. I told him how strongly I felt about it,” Schumer said.

“I was really upset about the New Jersey option. I made substantive arguments to BNY Mellon about the advantages of Manhattan.

“You can’t begrudge them selling their old building for a profit, but you could begrudge them using the money to go outside the city.”

BNY spokesman Kevin Heine declined to comment.

JLL New York- area President Peter Riguardi, who repped BNY in the 350,000 square-foot deal, said, “The bank had three choices” — Brookfield, Jersey City and 1 World Trade Center — “which all would have been

tremendous solutions. I think Brookfield will be great.”

Broad Street Development Closes on 80 Broad for $173M
9.16.14

Broad Street Development has closed on the purchase of 80 Broad Street from Savanna for $173 million, Commercial Observer has learned.

Savanna announced the sale of the 423,000-square-foot Financial District office building today. Broad Street Development said the sale price was $173 million.

Real estate private equity firm Savanna acquired 80 Broad Street between Stone and Beaver Streets in 2011 after taking control of the property’s senior mortgage at a 12 percent discount on its $75 million value, the New York Post reported in August when the deal was in contract. The building had previously been owned by Swig Equities, which paid $70 million for the property in 2004.

Savanna completed a comprehensive capital improvement program including a lobby renovation, façade upgrade, modernized elevators and upgrades to the common area bathrooms and corridors. Savanna also invested capital to complete work following Superstorm Sandy, protecting the building against future weather-related risks.

“We are proud of the improvements we have made at 80 Broad Street and the leasing success that has followed,” said Christopher Schlank, a managing partner of Savanna, in a prepared statement. “80 Broad Street is a further testament to the growth of the Lower Manhattan market, which continues to transform and attract tenants across a wide variety of industries.”

The new owners of 80 Broad Street hope to attract tech tenants moving beyond the incubator stage to the building, Raymond Chalme, the chief executive officer of Broad Street Development, previously told the Post.

Adam Spies, Douglas Harmon, Joshua King and Adam Doneger of Eastdil Secured represented Savanna in the sale. Broad Street didn’t have a broker in the deal.

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