Real estate investor Eric Hadar of Allied Partners and private equity firm Brickman have reportedly purchased New York's iconic Brill Building in a deal valued at about $250 million.
The historic landmark, located on Broadway, has been a ‘nerve center’ for popular music for more than 60 years. Designed by Victor Bark Jr. and built in 1931, the famous art deco-style building has been home to many well-known singer-songwriters over the years, including Neil Diamond and Paul Simon, as well as a diverse range of actors, directors, artists and performers, including Woody Allen, Martin Scorsese, Liza Minnelli and Lorne Michaels.
As part of the deal, the building will become home to the International Songwriters Hall of Fame, an organization that honors famous songwriters and their work. An arm of the National Academy of Popular Music, the Songwriters Hall of Fame has nearly 400 inductees, including George Gershwin, Bob Dylan, Bruce Springsteen and Stevie Wonder, among others.
The first four floors of the 175,000-square-foot building will be dedicated to retail, Eric Hadar said in a statement. The investors plan to start renovating the building immediately, preserving its historic elements while at the same time updating its amenities in order to attract new tenants.
‘We have a vision to capitalize on the legendary reputation of the property by transforming it into a modern day creative center for fashion, arts, media and entertainment in New York,’ Hadar said. ‘We are in active negotiations with a number of parties and expect to announce several exciting new retail and office tenants soon.’
The purchase price for the building was reportedly about $185.5 million – however, with anticipated renovation and leasing costs included, the deal has a total value of about $250 million.
Hadar said he anticipates a grand re-opening in late 2014.
Barry Sternlicht's Starwood Property Trust provided a $158.5 million first mortgage to help finance the transaction, while Square Mile Capital Management LLC provided $40 million of financing. Adam Spies and Doug Harmon of Eastdil Secured brokered the sale.
Exclusive retail leasing will be handled by Jeffrey Roseman of Newmark Grubb Knight Frank. Commercial leasing will be run by Paul Kotcher of Brickman.