KSR buys stake in $170M Garment District office building

L.H. Charney sells 49% of 1410 Broadway

KSR Capital Buys $170M Stake in 1410 Broadway from L.H. Charney
L.H. Charney’s Joseph Giannola, KSR’s Albert Sultan and 1410 Broadway (MHP, KSR, Google Maps)

KSR Capital bought a minority stake in a Garment District office building valuing it at $170 million.

KSR, the investment arm of Kassin Sabbagh Realty, bought the 49 percent interest in the 395,000-square-foot 1410 Broadway from owner L.H. Charney Associates. The sale closed in late 2023.

CoStar News first reported the deal.

“As part of the overall transaction, we restructured and extended our loan with the existing lenders further illustrating capital markets willingness to work with well capitalized, proven operators,” L.H. Charney’s Joseph Giannola told CoStar.

An Eastdil Secured team of Gary Phillips and Will Silverman represented L.H. Charney. Kassin Sabbagh’s Albert Sultan represented KSR Capital.

WeWork had been one of the largest tenants in the building, signing a lease for 45,000 square feet in 2019. L.H. Charney negotiated a deal to terminate WeWork’s lease before the company filed for bankruptcy.

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The landlord then signed a lease with a design and marketing company for 63,500 square feet.

The building is over 90 percent leased, according to CoStar.

KSR is based in the neighborhood, down the block at 1385 Broadway. KSR’s Sultan told the news outlet that its familiarity with “the lay of the land” factored into its deal, the outlet reported.

“The office market is in a big downturn that we’ve seen in other asset classes that have turned around,” he said. “[We] think it will rebound in the long run. . . If [interest rates come down, we believe the value will go up.”

L.H. Charney has owned the property since at least the 1990s, according to property records. The company financed the building with a $148 million loan from Pacific Coast Capital Partners in 2021.

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