The Real Deal New York

Shorenstein to buy 1407 Broadway ground lease for $330M

1.1M sf building features 33K sf of retail space

February 20, 2015 10:36AM
By Hiten Samtani

From left: 1407 Broadway and Doug Shorenstein

From left: 1407 Broadway and Douglas Shorenstein

UPDATED, 11:35 a.m., Feb. 20: Shorenstein Realty Services is in contract to pay $330 million for the ground lease at 1407 Broadway, a 1.1 million-square-foot office building in Midtown, sources familiar with the transaction told The Real Deal.

David Lichtenstein’s Lightstone Group controlled the operating sublease at the 43-story tower, while Abraham Kamber & Co. controls the master lease. Solil Management, the company that manages the assets of late real estate mogul Sol Goldman, owns the ground beneath the property, which occupies a full blockfront between West 38th and 39th streets.

The building includes 33,000 square feet of retail space. Office tenants include retailer Lands’ End and startup accelerator Techstars. Asking rents are in the mid-$50s per square foot, according to the property’s website.

A Savills Studley team led by Woody Heller and Will Silverman were marketing the leasehold. HFF’s Eric Anton, Andrew Scandalios and David Fowler represented the buyer, according to sources. All the brokers declined to comment.

Shorenstein, which is headquartered in San Francisco, also owns a 21-story office building at 850 Third Avenue, where it maintains an office, and holds a large stake in a 330,000-square-foot office building at 477 Madison Avenue. Shorenstein declined to comment.