JEMB Realty is looking to sell a 50 percent stake in its 715,000-square-foot Financial District office building at 75 Broad Street.
The Lower Manhattan-based landlord is marketing the property as a value-add investment with the building at 86 percent occupancy and below-market leases set to roll over, Real Estate Alert reported.
The building is valued at up to $400 million, Real Estate Alert reported, meaning with a refinancing a new equity partner would put up $70 million.
Cushman & Wakefield is marketing the property, known as the New York Technology Exchange.
JEMB co-founders Joseph Jerome and Morris Bailey started the company in 1990, and now Jerome’s three sons are taking a more active role in running the firm. They’re expected to use the proceeds from the sale to finance new investments.
JEMB is partnering with Forest City Ratner Companies to develop a 500,000-square-foot office tower in Downtown Brooklyn at 420 Albee Square.
The 34-story 75 Broad was built in 1928 as the headquarters for the telecommunications firm ITT. It was nearly empty when JEMB bought it in 1990, repositioning it and dividing the space between office and telecom tenants.
AT&T, which leases about 29,000 square feet, is one of the largest tenants. Others include Internap, North South Productions, Toll Brothers and the New York City Opera.
JEMB reportedly laid out $40 million to upgrade the building through 2014. [REA] – Rich Bockmann