The Real Deal New York

Paramount Group in contract for $112M Noho building

Seller F.D.R. Industries has owned the building for nearly 45 years

August 11, 2015 09:00AM
By Hiten Samtani and Rich Bockmann

Paramount Group president Albert Behler and 670 Broadway

Paramount Group president Albert Behler and 670 Broadway

Updated, 3:00 p.m., Aug. 11: Office landlord Paramount Group is in contract to buy a Noho mixed-use building for $112 million, The Real Deal has learned.

The five-story, 75,000 square-foot property – located at the corner of Bond Street, at 670-674 Broadway – has been owned by since 1971 by F.D.R. Industries, headed by President Jay Deutsch, who also co-directs the photojournalism space Leica Gallery headquartered in the building.

Neither Paramount, which purchased the building through its private equity fund, Fund 7, nor Deutsch could be immediately reached for comment. It is unclear which brokers were involved in the deal.

The building has 11,250 square feet of available retail space on the ground floor asking $267 per square foot, according to a listing on Agorafy. The largest office tenant is the advertising-technology firm Simulmedia, which has more than 11,000 square feet on the full second floor, according to CoStar.

Investor Eli Cohen late last year paid $46 million to buy the 40,000-square-foot 623 Broadway nearby, and New York University paid $157 million for a 150,000-square-foot building at 708 Broadway, with plans to convert it into temporary space for athletic facilities.

Paramount, through its real estate investment trust, owns several premier Class A properties in the city, such as the 2.6-million-square-foot Allianz building at 1633 Broadway and the 45-story 1301 Avenue of the Americas across from Rockefeller Center.

The Midtown-based landlord in November raised $2.29 billion in the largest-ever public offering for a United States real estate investment trust.

The law firm Olshan Frome Wolosky LLP in May signed a 15-year lease for more than 50,000 square feet at the company’s 1325 Sixth Avenue.