Broad St. Development sells 370 Lexington to Sherwood Equities and J.P. Morgan Chase

Broad Street Development (BSD), an investor group focused on acquiring real estate assets, has completed the sale of 370 Lexington Ave. The 27-story, 305,000 s/f Midtown office building was sold to Sherwood Equities and J.P. Morgan Chase for $155 million, according to Raymond Chalmé, principal of BSD. BSD acquired the asset two years ago for $97.2 million. The building is 92% occupied. According to Jeffrey Katz, CEO of Sherwood, "We are delighted to have bought this jewel of a property. Through our efforts, we plan to make 370 Lexing ton the premier small-tenant building in the Grand Central submarket, and that is primarily the market we will be targeting-more specifically, the 1,000-10,000 s/f user, who we think is underserved today." Sherwood Equities represented itself in the transaction. Scott Latham, Jonathan Caplan, Yoron Cohen, Richard Baxter, Karen Wiedenmann and Helen Hwang of Cushman & Wakefield were the brokers for BSD. The buyer is assuming the property's outstanding mortgage from CIGNA.Legal representation for BSD was provided by Wachtel & Masyr, LLP and Platte, Klarsfeld, Levine & Lachtman. Willkie, Farr & Gallagher represented Sherwood. Broad Street Development is an investor group led by Raymond Chalmé and Daniel M. Blanco focusing on the acquisition and management of real estate assets. With more than two decades of combined real estate experience, Mr. Chalmé and Mr. Blanco have developed a reputation as "hands-on" owners and managers. The firm's initial area of concentration is the repositioning of acquired assets to meet the requirements of today's commercial and residential tenants.