JLL sells partial stake in 61 Broadway for $215.6M, secures $290M in recapitalization financing
A renovated, pre-war office tower in Manhattan will be positioned for higher yields. JLL’s Capital Markets experts today announced RXR Realty has sold a 49 percent stake in 61 Broadway to CAMC for $215.6 million. In addition, JLL secured $290 million in recapitalization financing for the 786,594-square-foot Class A office asset in Manhattan’s Financial District. The lending group of Bank of China and SL Green teamed up on the debt.
Vice Chairmen Scott Latham, Richard Baxter and Senior Vice Presidents Anthony Ledesma and Stephen Shapiro led the JLL team on the equity sale. Managing Director Kelly Gaines and Vice President Aaron Niedermayer led JLL’s financing efforts.
“Assets with such significant near-term rent upside in an exceptional location such as 61 Broadway are few and far between,” said Latham. “With demand for Manhattan office space continuing its impressive run, this was a prime opportunity for RXR Realty to sell a stake in their asset and gain a valuable partner to usher in a new era of success for 61 Broadway.”
Added Gaines, “We continue to see the Financial District attract tenants seeking bespoke state-of-the-art office space, especially space that lends itself to creative businesses. The iconic design of 61 Broadway, along with its sweeping views of New York Harbor and the Hudson River, and recent infrastructure overhaul position this asset to increase yields and maintain a strong cash flow for years to come. Lenders believe in the continued strengthening of the downtown office market and are very willing to make loans on the right buildings with the right operators.”
Built in 1916, 61 Broadway is located within two blocks of four different subway stations, and within five blocks of the Fulton Center and the World Trade Center Transportation Hub.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2015 alone, JLL Capital Markets completed $140 billion in investment sale and debt and equity transactions globally. The firm’s Capital Markets team comprises more than 2,000 specialists, operating all over the globe.
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About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. A Fortune 500 company with annual fee revenue of $5.2 billion and gross revenue of $6.0 billion, JLL has more than 280 corporate offices, operates in more than 80 countries and has a global workforce of more than 60,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 4.0 billion square feet, or 372 million square meters, and completed $138 billion in sales, acquisitions and finance transactions in 2015. Its investment management business, LaSalle Investment Management, has $58.3 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.
