Edge Fund Advisors, HSBC Land $590M for Manhattan Tower

1540 Broadway. Image via Wikimedia Commons

A joint venture of Edge Fund Advisors and HSBC has landed $590 million in financing for 1540 Broadway, a 44-story office tower in the heart of Manhattan’s Times Square.

Built in 1990 and also known as the Bertelsmann Building, the Class A office tower underwent $40 million in renovations over the past three years, including a 27,000-square-foot amenity floor designed by Gensler and new smart tech features throughout the property. The building’s lobby and entrance area were also upgraded.

The loan was provided by Apollo, MSD and Monarch. A Newmark team led by Jordan Roeschlaub and Dustin Stolly arranged the financing deal.

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Tenants at the 907,427-square-foot office building include Schrodinger, G/O Media, Adobe and Duane Morris, according to CommercialEdge data.

HSBC and Edge acquired the property in two phases in 2011 for $596 million. The building, designed by Skidmore, Owings and Merrill named for its original anchor tenant, the German media company Bertelsmann, has changed hands several times since its construction. CBRE Group, The Paramount Group, Deutsche Bank and Harry Macklowe all owned the property at one time.

In 2017, Newmark announced it had been tapped to sell a 48 percent stake in 1540 Broadway, which the brokerage said at the time was valued at $925 million.

The major financing comes during a time when Manhattan’s office vacancy rate has been on the uptick, according to a recent CommercialEdge report. As of February, the borough’s vacancy rate reached 13.1 percent, up 30 basis points month-over-month.