80 Broad Gets $235-M Recapitalization in Financial District

The owners of 80 Broad Street have completed a $235 million recapitalization of the a 423,000-square foot Art Deco office tower in the heart of Manhattan’s Financial District.

“We are reinvesting in Downtown Manhattan in a major way. We’ve been bullish on Downtown for 15 years and continue to be,” said Raymond Chalme, CEO of real estate investment firm Broad Street Development (BSD), which acquired 80 Broad Street  in 2014 for $173 million.

BSD has partnered with pension fund advisor Invesco and has transferred a controlling stake in the office tower to the partnership for $235 million, or $550 per square foot. The recapitalization is comprised of a $102 million first mortgage assumption, plus an additional $30 million mezzanine proceeds from AIG. The recapitalization took out previous mezzanine lenders RXR Realty and Colony Capital.

Adam Spies and Josh King of Cushman & Wakefield represented BSD in the transaction.

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