David W. Levinson and Robert T. Lapidus’ L & L Holding Company have sold an office building on Broadway in Manhattan, which they co-owned with Allan Leventhal and Fred Seigel’s Beacon Capital Partners, for $502 million to a firm affiliated with Germany’s Deutsche Bank.
Deutsche Asset & Wealth Management, a property investment firm controlled by Deutsche Bank, finalized the deal on August 26.
“222 Broadway is a signature building and a core property that we are pleased to be able to add to our portfolio, ” said Todd Henderson, Head of Real Estate, Americas, at DeAWM. “The property offers stable cash flows due to its in-place mix of corporate and retail tenants, and its renovation should enhance its value long-term in this increasingly vibrant part of New York City.”
Located between Ann and Fulton Streets in lower Manhattan, 212-222 Broadway is a 31 story Financial District class A office tower opened in 1961 which has a total of 756, 138 square feet of space. The building also has almost 30, 000 square feet of retail space, including 16, 000 square feet at street level and 10, 000 on the second floor that wrap around the building.
Global clothing retailer Zara signed a 15 year lease for the entire space back in January and will open there by the end of the year.
Workspace provider WeWork signed a 16 year lease for 120, 500 square feet of space there in 2013.
Deutsche Bank will now hold a 95% stake in the property, with L&L retaining the remaining 5%.
L & L and Beacon bought the building for $230 million in 2010 from Bank of America. The two firms invested an additional $50 million to renovate its retail portions. That still leaves them a profit of more than $220 million.
Manhattan-based L&L Holding Company, LLC is a privately-owned real estate investment company with a current portfolio exceeding 6 million square feet of office space primarily in Manhattan. L&L provides a broad spectrum of services to its partners including acquisition, disposition, asset management, leasing, accounting, design, construction and financing. The company’s current portfolio includes many notable properties, including 425 Park Ave., 195 Broadway, 200 Fifth Ave., 150 Fifth Ave., 114 Fifth Avenue, Metropolitan Tower and 600 Third Avenue.
Beacon Capital Partners is a private Boston based real estate investment firm with experience generating value-added returns through investments in high-quality office properties.