Monday Properties, a New York-based development, ownership and management company, has entered into a joint venture with institutional investors in a fund managed by Prudential Real Estate Investors (PREI) to recapitalize the 745,000 s/f 1440 Broadway.
Monday Properties now shares ownership of the class A property with PREI and serves as the managing partner. Monday is also the property management and leasing agent for 1440 Broadway. The building, which is located between West 40th and West 41st Sts., is 99% leased. Monday Properties acquired 1440 Broadway in 1998, and directed a successful repositioning of the asset.
"This is our first venture with PREI, and we both see an opportunity that has great long term promise," said Anthony Westreich, CEO and president of Monday Properties. "The property has always leased well and stands next to some of the city's most exciting developments at Bryant Park and Times Sq."
Tenants at 1440 Broadway include Mizuho Capital, Liz Claiborne, Macy's, Condé Nast and Citibank.
Sidney Friedman, Michael Jaffe and Michael Mayerfeld of Kramer Levin Naftalis & Frankel LLP and Jack Mandel of Bryan Cave LLP represented Monday Properties. Chris Price of Goodwin Proctor represented PREI. Adam Spies of Eastdil Secured advised the parties on the recapitalization.
Monday Properties has also completed a lease renewal and extension with Macy's Inc. at 1440 Broadway. The department store signed for 105,000 s/f.
Craig Panzirer, senior vice president and director of leasing for Monday Properties, represented the ownership of the building. Scott Gottlieb and Michael Laginestra of CB Richard Ellis Inc. represented the tenant.
"The lease extension and renewal with Macy's demonstrates the effectiveness of our positioning of 1440 Broadway as one of the highest quality, prewar buildings in the Times Square submarket," said Panzirer. "It has remained fully leased since Monday Properties acquired the property in 2002."
Macy's has been a tenant at 1440 Broadway since 1983, occupying the sixth and seventh floors of the building, for a total of 70,000 s/f. Its lease for the two floors was set to expire in 2011. Macy's signed a 10-year deal for the entire 13th floor, bringing its total space at 1440 Broadway to 105,000 s/f. The 13th floor was previously occupied by Primedia. The department store also extended the term of its lease for the sixth and seventh floors to be conterminus with its space on the 13th floor.
With the completion of the Macy's lease renewal and extension, the 1440 Broadway building is now nearly fully leased. Tags: