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Jeff Sutton, SL Green put 530 Broadway on the market
Three interconnected office-and-retail buildings in Soho could fetch $450M: sources
Jeff Sutton and SL Green Realty are quietly shopping around a trio of 11-story Soho office-and-retail buildings at 530-536 Broadway for sale, sources told The Real Deal. Sources said the properties, if sold in full, could fetch about $450 million.
Eastdil Secured’s Adam Spies and Doug Harmon are marketing the buildings, offering buyers a chance to purchase them outright or acquire the office and retail components separately.
The buildings, which collectively span 194,500 square feet in prime Soho, have steadily climbed in value over the past decade. Joseph Sitt’s Thor Equities paid $190 million for them in 2007, property records show. Then, in 2014, a joint venture led by Sutton acquired them for $326 million. SL Green, which frequently collaborates with Sutton, invested $100 million into the joint venture. The partners also secured a $200 million mortgage from Morgan Stanley.
Sutton, however, specializes in retail assets, and sources familiar with the marketing said he was looking to unload the properties as they have a large office component.
The retail component, which encompasses the bottom two floors, is home to tenants such as shoe brand Vince Camuto, casual apparel chain Club Monaco and AT&T. Eastern Mountain Sports shuttered its bilevel, 18,000-square-foot store in February after seven years in the space. Office tenants include architect Karl Fischer and advertising agency Anomaly Partners, which recently grew to 43,000 square feet after taking the Guardian newspaper’s former digs.
Retail asking rents at the property in 2013 were about $800 per square foot, while office rents are in the low-to-mid $70s per square foot.
Representatives for Eastdil, SL Green and Sutton declined to comment.
Directly across the street, Sutton is developing a five-story, 52,500-square-foot project at 529 Broadway in partnership with Thor, Aurora Capital Associates and A&H Acquisitions. Nike is set to occupy the building, paying $1,200 per square foot on the ground floor.