Introduction to 568 Broadway
Some day, and that day may never come, real-estate media will discover that tenant departures and loan expirations at any particular office building don’t portend doom for the building.
Take 568 Broadway, the 12-story, century-old Soho beauty that Eric Hadar of Allied Partners and Bobby Cayre of Aurora Capital have owned for about 20 years.
The Group Nine Media Exit
When Moody’s warned last fall that the exit of Vox’s Group Nine Media caused the building’s cash flow to “significantly decline,” several major outlets foresaw only trouble ahead. OMG — the move-out left the 330,000 square-foot building with 100,000 square feet to re-fill!
568 Broadway Studios Architecture
Thriving Despite the Exit
But 568 Broadway’s retail spaces are rented to high-end tenants such as Equinox and the flagship BOSS athletic-good store. A troubled, $200 million mortgage loan was successfully restructured in February. Now, Midtown South sources say a lease is already out for 60,000 square feet with an unidentified office tenant.
Newmark senior managing director Brett Harvey, who represents the owners, told us the loan restructuring “provided capital to improve the building.
Market Changes and Pivot
“The market’s changed” since the pandemic, Harvey said. “The owners are pivoting to exploit rising demand.” The property is one of Soho’s largest office properties with 30,000 square-foot floor plates which can accommodate large users,” he said.
“Not many buildings in this area have windows on three sides,” he said.
Upgrades and Renovations
A rendering of the new rooftop desk of 568 Broadway, which is undergoing an estimated $50 million capital upgrade. Studios Architecture
An estimated $50 million capital upgrade, already in progress, includes new lobbies, elevator modifications and an all-new roof deck, all designed by Studios Architects.
“It’s the ideal time to push rents,” Harvey said. Target prices range from the mid-$80s per square foot to around $120 psf.
Conclusion
In conclusion, 568 Broadway is thriving despite the exit of Group Nine Media. The building’s owners have successfully restructured the mortgage loan and are pivoting to exploit rising demand. With its high-end retail tenants, large office spaces, and upcoming upgrades, 568 Broadway is poised for success.
FAQs
Q: What is the current status of 568 Broadway?
A: 568 Broadway is currently undergoing an estimated $50 million capital upgrade and has a lease out for 60,000 square feet with an unidentified office tenant.
Q: What is the target rent price for 568 Broadway?
A: Target prices range from the mid-$80s per square foot to around $120 psf.
Q: Who are the owners of 568 Broadway?
A: Eric Hadar of Allied Partners and Bobby Cayre of Aurora Capital have owned 568 Broadway for about 20 years.
