The Real Deal New York

Atlas Capital buys 1604 Broadway ground lease for $15.5M

Jeff Sutton, SL Green lost control of the troubled Times Square retail building in 2012

September 14, 2015 05:25PM
By Ariel Stulberg

1604 Broadway

1604 Broadway

Years after a partnership led by Jeff Sutton and SL Green Realty was forced to give it up, the five-story Times Square retail building at 1604-1610 Broadway has a new ground lessee, Atlas Capital Group.

Atlas paid $15.5 million for the ground lease for the 21,000-square property between West 48th and 49th Street.

The deal includes the two-story building on the adjacent plot, at 732-736 Seventh Avenue.

The lessor, Torchlight Loan Services, received the distressed building in 2012. Sutton and SL Green faced eviction by landowner Farmore Realty after their largest tenant, the Spotlight Live club, failed to make payments.

The club’s business had collapsed following a pair of murders took place there, the last in 2008.

The partnership, which also included Onyx Equities, bought the lease in 2005.

Atlas Capital declined to comment on their plans for the building.