The Real Deal New York

SL Green, Ivanhoe look to sell
1745 Broadway’s office condo for $650M

Penguin Random House occupies most of the space
January 31, 2018 08:30AM

From left: 1745 Broadway, Marc Holliday and Daniel Fournier

A 685,000-square-foot office condominium at 1745 Broadway near Columbus Circle hit the market with a $650 million price tag.

SL Green Realty and Ivanhoe Cambridge jointly own the condo, which spans floors 2 through 26 in the 50-story tower, Real Estate Alert reported. The condo generated $23.9 million in annualized revenue last year, meaning the valuation translates to a cap rate of 3.75 percent.

Publisher Penguin Random House occupies 604,000 square feet under a lease deal running through 2033. Financial firm PDT Partners occupies the rest.

Eastdil Secured has the listing.

Related Companies built the tower in 2003. Its upper floors were sold off as residential condominiums. Witkoff Group and SITQ, Ivanhoe Cambridge’s predecessor firm, bought the office condo in 2006 for $508 million. SL Green first invested in 2007 and increased its stake to 56.9 percent in 2014, buying out Witkoff, according to Real Estate Alert.

Last year, the owners refinanced the property with a $375 million loan from Bank of China. [REA] — Konrad Putzier