The American-Israeli real estate firm Harbor Group International along with Israeli insurance companies Migdal and Menora are selling a Manhattan office building at a whopping profit of $100 million, the partnership reported Sunday.
The 24-story property at 1412 Broadway, in the Garment District, was purchased by the Harbor Group the insurance companies in equal one-third shares at the end of 2010 for $150 million. It is in contract to be sold to U.S. real estate investor Isaac Chetrit for $250 million. The 414,400-square-foot (38,500 square meters) building at the corner of Broadway and 39th Street was 84% occupied when it was purchased a little over three years ago, and is now 96% full, the Harbor Group stated.
Harbor Group International’s real estate holdings are primarily in the United States, but its investors include a number of publicly-traded Israeli companies. It owns around 40 office buildings and shopping centers and 24,000 apartments, and recently established a hedge fund focused on North American real estate securities.
Harbor Group International CEO Jordan Stone said a substantial factor in the value of 1412 Broadway in the current sale to Chetrit was the result of the steps taken to increase occupancy and to extend the leases of current tenants. Harbor Group Israel managing director David Zwiebel said the decision to sell the building was based on substantial improvement of the situation in the building itself and an upturn in the midtown real estate market in general.