Case Study

1880 Broadway

Acquisition Date:September 2005
ASSET TYPE: Full block retail at the base of 15 Central Park West condominium
SIZE: 84,220 SF
TENANTS: Best Buy
JP Morgan Chase Bank
West Elm (William-Sonoma, Inc.)
It’Sugar
Acquisition Cost:$72.4 million
Initial Equity:$21.6 million
Unrealized Value (Total Capitalization):$121.6 million
Projected Gross IRR: 13.9%
Projected Gross Equity Multiple: 3.0x
Strategy
  • Forward purchase of to-be-built retail condo
  • Pre-lease the 85,000 square feet of newly built modern retail premises on four levels, acquired prior to construction, to national retailers who were the best in their respective retail segments
  • Leasing efforts to highlight the 435 feet of exceptional frontage on Broadway, 61st Street and 62nd Street and leverage the divisibility of the premises
Execution
  • The partnership leased the basement and sub-basement premises two years prior to delivery to Best Buy above underwritten rents
  • Best Buy, Williams Sonoma and JP Morgan Chase leased the entire premises within six months of completion of construction