The Real Deal New York

Crown-led JV sells Lower Manhattan retail condo for $70M

Buyer is fund led by banking giant Morgan Stanley

February 04, 2014 03:25PM
By Katherine Clarke

Haim Chera of Crown Acquisitions and 170 Broadway

Haim Chera of Crown Acquisitions and 170 Broadway

Crown Acquisition, the Carlyle Group, Tribeca Associates and Highgate Holdings are in contract to sell a 20,000-square-foot retail condominium near the World Trade Center for close to $70 million, The Real Deal has learned.

The sale includes only the basement, ground, mezzanine level and second floor of the 17-story building at 170 Broadway. The trio bought the entire Lower Manhattan building for just $55 million in 2011.

The buyer of the retail space is a domestic pension fund led by Morgan Stanley, sources said.

The deal is being brokered by Doug Harmon and Adam Spies of commercial brokerage Eastdil Secured. Harmon and Spies declined to comment on the deal.

The sellers bought the property as an old office building from Troy Baydala of AMG Realty just over two years ago. They then redeveloped it into a hotel. A Marriott Residence Inn is slated to open in the location this spring. The 243-room, extended-stay hotel was designed by architecture firm Stonehill and Taylor.

Carlyle declined to comment on the deal and none of the other sellers immediately responded to requests for comment. A Morgan Stanley spokesperson was not immediately available.

Retail activity on lower Broadway has been heating up. Urban Outfitters inked a deal last year for 21,000 square feet at nearby 180 Broadway, the building owned by retail tycoon Jeff Sutton, SL Green Realty and Harel Insurance.

Crown and Highgate are frequent collaborators. The two purchased the trophy 27-story office and retail tower at 650 Madison Avenue last year for $1.3 billion. They acquired it from Carlyle.

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