Investment firm Beacon Capital Partners has closed on an investment in 195 Broadway in Lower Manhattan as part of a $280 million recapitalization of the property, according to city records.
New York-based L&L Holding Co., headed by developers David Levinson and Rob Lapidus, and GE Pension Trust, an arm of the corporate conglomerate, previously had joint ownership of the tower. They began searching for an investment partner earlier this year, after purchasing the building for $265.7 million from H.J. Kalikow & Co. in 2005.
Steve Solomon, a spokesman for L&L, confirmed Beacon's involvement to International Business Times. He declined to comment further.
Crain's previously reported that Beacon signed a contract for a 70 percent to 80 percent stake, meaning it would have paid between $196 million to $224 million.
A spokesman for GE declined to comment. A spokesman for Beacon had no immediate comment.
Real estate brokerage Eastdil Secured advised L&L and GE in the deal.
The building has a $196 million securitized mortgage that matures in April 2012, according to Real Estate Alert.
Major tenants in the building include Thomson Reuters, which occupies around 400,000 square feet, Cardinia Real Estate, with 181,000 square feet and True North Communications, which has 72,000 square feet, according to Real Estate Alert.
According to the building's Web site, a total of 178,552 square feet of the 1-million-square-foot building is vacant. The city's Landmarks Preservation Commissioned also approved a plan to create 30,000 square feet of retail space in the lobby and basement, which L&L projects will add $75 million the building's value.
The 29-story tower was built between around 1923 and was the former American Telephone & Telegraph headquarters. It is near the new Fulton Street Transit Center, which is under construction.
Boston-based Beacon Capital Partners also recently put up for sale 1211 Sixth Avenue, occupied by News Corporation, for $1.9 billion, but withdrew it from the market after bids fell short. It is reportedly now seeking an equity partner. Beacon also has a stake in the Paramount Group's 1633 Broadway, a 2.5 million square foot tower, and a long-term ground lease at a development site at 330 Hudson Street.