JLL Secures $350M Loan for Shorenstein Properties in NYC
Barclays provides floating-rate loan for Class A office property steps from Bryant Park
NEW YORK, November 6, 2019 – JLL Capital Markets has successfully arranged a $350 million loan to finance the leasehold position of 1407 Broadway, a 43-story, 1.1 million-square-foot office building. The group worked on behalf of Shorenstein Properties LLC to place the five-year loan with Barclays.
Located on Broadway between 38th and 39th Streets, 1407 Broadway sits at the intersection of Times Square, Bryant Park and Hudson Yards. The property, built in 1950 and designed by famed architect Ely Jacques Kahn, underwent a $62 million modernization campaign in 2015. The three-year program included the renovation of the lobby, common areas, security, roof and terrace as well as elevator cab upgrades.
The building offers unique, loft-like space with 12-foot ceilings and flexible floorplans ranging from 14,000 to 55,000 square feet. The property features multiple outdoor spaces for tenants as well as dedicated outdoor seating on the Broadway streetscape. The property’s dynamic, thru-block lobby offers an additional entrance on Seventh Avenue.
A total of 160,000 square feet of leasing activity has occurred in the past 12 months. After undergoing a major retail repositioning and adding new retail storefronts, the building’s retail space is 95 percent occupied with tenants such as Num Pang, Luke’s Lobster and ‘Wichcraft.
1407 Broadway boasts an extraordinary location in the heart of one of New York City’s most desirable submarkets. It is two blocks from Times Square, one block from Bryant Park and six blocks to the east of Hudson Yards. It offers unparalleled transportation accessibility to all New York neighborhoods and the surrounding tri-state area, with direct access to the city’s main subway lines as well as commuter rail services including the Long Island Railroad, NJ Transit and Metro North.
Geoff Goldstein, Senior Director; Michael Gigliotti, Senior Managing Director; and Christopher Peck, Managing Director, led the financing on the JLL Capital Markets team. Andrew Scandalios, Senior Managing Director and David Giancola, Managing Director, offered office expertise.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of nearly 92,000 as of June 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com
Founded in 1924, Shorenstein Properties LLC is a privately-owned, real estate firm that owns and operates high-quality office, residential and mixed-use properties across the U.S., with offices in San Francisco and New York. Since 1992, Shorenstein has sponsored twelve closed-end investment funds with total equity commitments of $8.8 billion, of which Shorenstein committed $723.5 million. The firm uses its integrated investment and operating capabilities to take advantage of opportunities that, at the particular time in the investment cycle, offer the most attractive returns. Investments have included ground-up developments, asset repositioning and stabilized assets; investment structures have included asset acquisitions, mezzanine loans, preferred equity investments and structured joint ventures. These funds have invested in properties totaling 67 million square feet in transactions with a gross investment value in excess of $16 billion.