A partnership between Canada-based Ivanhoé Cambridge and Callahan Capital Properties of Chicago closed on the $650 million purchase of 85 Broad Street in the heart of Manhattan. According to The Real Deal, the acquisition was made possible with a $360 million CMBS loan provided by Natixis.
The property’s most recent owners were MetLife Real Estate Investors and Beacon Capital Partners. MetLife had owned the 1.2 million-square-foot trophy office tower since 1985, when it bought it from Goldman Sachs Asset Management. In 2015, Beacon Capital acquired a 50% ownership stake in the Financial District property, at an undisclosed price, per Yardi Matrix data.
The 30-story Class A office building at 85 Broad Street was built in 1983 as the headquarters for Goldman Sachs. The company moved out of the property in 2010, to a new location on West Street. Conveniently located in Manhattan, at the core of the New York City office market, the building houses high-profile tenants such as WeWork, Oppenheimer, MLA and JLL–which also handles property management for 85 Broad. The office tower includes 7,000 square feet of retail and underwent cosmetic renovation work in 2013, according to Yardi Matrix.
Arthur Lloyd, president of Ivanhoé Cambridge’s North American office operations, explained that “85 Broad Street features state-of-the-art building services and amenities and appeals to both traditional and TAMI users. This acquisition expands our footprint and brings our New York office portfolio to more than 6.7 million square feet.” For Callahan Capital Properties, the deal was its first acquisition in Downtown Manhattan. “We believe downtown offers tremendous long-term growth potential given the immense public and private investment that continues to attract a broad array of businesses and residents,” Tim Callahan, CEO of Callahan Capital, said in a statement.