American Exchange Group Acquires 1375 Broadway

Alen Mamrout’s American Exchange Group has taken ownership of 1375 Broadway, months after acquiring the note backing the Herald Square office building.

American Exchange closed on its acquisition of the property from Savanna before the new year, the Commercial Observer reported. It secured ownership by acquiring the $200 million debt behind the property in August from Aareal Capital.

Sail Harbor Capital financed the acquisition of the note, which was then converted to a first mortgage after closing. Property records show a mortgage amount of $165 million.

A Newmark team led by Adam Spies and Adam Doneger arranged the financing and spearheaded the note sale.

American Exchange’s Joe Mamrout said the acquisition “reflects our strong belief in the resurgence and enduring appeal of Manhattan’s office market.”

Savanna will continue to operate the 27-story, 465,000-square-foot property. The building went back and forth between owners: Savanna sold the building to Westbrook in 2015 for $310 million, and then decided to reacquire it in 2020 for $435 million.

American Exchange is a fashion manufacturing company that has been dabbling lately in real estate. In November, the company’s real estate arm Sentry Realty teamed with 60 Guilders to acquire 292 Madison Avenue from Vanbarton Group for $90 million. Joe Mamrout said at the time, “We are very active and have significant confidence in the New York commercial real estate market.”

As for the seller of 1375 Broadway, Savanna is coming off a busy year. In December, the firm paid $85 million for the leasehold of the 100,000-square-foot 430 West 15th Street in the Meatpacking District, a significant discount from the $150 million seller Invesco paid to acquire the leasehold in 2018.

In November, Savanna acquired 799 Broadway in Greenwich Village from Columbia Property Trust for $255 million, or $1,433 per square foot.

— Holden Walter-Warner