The Real Deal New York

Ilan Bracha seeks $20M for Keller Williams’ Tribeca office space

B+B Capital paid $10M in 2014
By E.B. Solomont | October 04, 2018 05:15PM

Ilan Bracha and 377-379 Broadway in Tribeca

Keller Williams’ Tribeca office condominium is on the block.

The franchise’s co-founders, Ilan Bracha and Haim Binstock, are asking $19.5 million for the 15,000-square-foot space, located at 377-379 Broadway.

Bracha and Binstock purchased the retail condo through their investment firm, B+B Capital, for $10 million in 2014. They subsequently leased it back to Keller Williams, and Bracha said the space is being offered with the brokerage as a tenant. The condo is spread over three floors — the basement, mezzanine and main level — and Keller Williams Tribeca pays $900,000 a year in rent with seven more years on its lease, Bracha said.

“We’re doing it now because we’re thinking we can get good numbers. The marketing has lots of opportunities now,” he said.

On the heels of a turbulent few months for Keller Williams’ New York franchise, Bracha stressed that B+B Capital and Keller Williams Tribeca are separate entities, and said that both businesses are strong.

Keller Williams moved into the Tribeca space in 2015, the same year it expanded in Midtown, inking a 5.5-year deal to sublease 30,000 square feet at 1155 Sixth Avenue.

Earlier this year, Keller Williams’ Midtown franchise was shaken by the loss of two CEOs in quick succession; the departure of agents to rival firms; and talk of shrinking the office footprint.

The tumult fueled speculation that Keller Williams could shutter its Midtown office entirely — a rumor that Bracha flatly denied.

But he conceded a need for cost-cutting after the brokerage grew to 900 agents. Until recently, the Midtown office generated $1 million in profits a year, according to a company publication.