The Real Deal New York

Broad Street Development secures $155M for 370 Lexington buy

Invesco provided the the loan
By David Jeans | December 18, 2018 05:45PM

From left: Broad Street Development CEO Raymond Chalmè, 370 Lexington Avenue, and Invesco CEO Martin Flanagan (Credit: BSD, Witkoff, and Invesco)

UPDATED, Dec. 21, 2:15 p.m.: Broad Street Development, in partnership with Terra Capital Partners, has locked in roughly a $155 million financing to fund the purchase of 370 Lexington Avenue.

Invesco Real Estate provided the financing, according to mortgage documents filed this week. The debt consists of a $120 million senior mortgage and a $35 million mezzanine piece. Broad Street agreed to buy the property for $190 million in September from Japanese investment company Unizo Holdings, which is offloading its $1 billion Manhattan portfolio. A Cushman & Wakefield team led by Doug Harmon negotiated the sale.

Unizo sold the 27-story, 311,000-square-foot tower at a loss, having paid Sherwood Equities and JPMorgan Chase $247 million for it in 2015. It has also sold 440 Ninth Avenue (for $269 million) and 321 West 44th Street (for $150 million) this year.

It’s not the first time Broad Street has had an interest in 370 Lexington. Public records show the firm bought the property for $97.2 million in 2006 before selling it to Sherwood for $155 million two years later.

Meanwhile, Invesco has been involved in a flurry of deals in recent months. In October, the Atlanta-based firm took an 80 percent stake in AvalonBay’s multifamily portfolio for $760 million, which includes the 405-unit AVA High Line at 525 West 28th Street and the 305-unit Avalon West Chelsea at 282 Eleventh Avenue.  Earlier this year, it took the leasehold interest on TH Real Estate’s office building at 430 West 15th Street for $158.5 million.

Representatives for Invesco and Broad Street could not immediately be reached.

Update: This story has been updated to reflect the full financing amount, as mezzanine debt is not recorded in public records, as well as the identity of Broad Street’s partner in the deal.