The Investment Property. 465 Broadway comprises 14,029 SF of retail space on the ground and basement floors of 40 Mercer Street, a luxury residential condominium building located in Manhattan’s thriving SoHo neighborhood. Constructed in 2007, the Jean Nouvel-designed property features new glass and steel construction, floor to ceiling glass, 18 foot high ceilings, and wide column spacing ideal for retail tenants. Located in the Historic District, the property includes 75 feet of frontage on Broadway, 200 feet of frontage on Grand and 45 feet of frontage on Mercer. The property is fully leased to four tenants including Wells Fargo and Bose.
The Opportunity/Challenge. Through our broad network of proprietary relationships, Savanna identified seller interest and acquired the fully-leased property in an off-market transaction in July of 2012.
The Strategic Insight. The Broadway corridor of SoHo is one of the best-performing retail corridors in the United States, anchored by renowned international and national retailers. Observing rising rents further north on Broadway and the pressure pushing major retailers further south, Savanna recognized 465 Broadway to be a prime corner retail location positioned to benefit from these trends.
Plan Execution. As the SoHo retail market continued to rise, Savanna saw an opportunity to market the property for a potential sale. Savanna sold 465 Broadway in July 2013, achieving attractive returns for our investors in both IRR and multiple.