Harbor Group, Migdal, Menorah sell NY property

The building in Midtown Manhattan was sold to Isaac Chetrit for $250 million.

Harbor Group International LLC has sold the office building at 1412 Broadway in Midtown Manhattan to Isaac Chetrit for $250 million. Harbor Group, Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL), and Menorah Mivtachim Holdings Ltd. (TASE: MORA) bought the property for $150 million in late 2010. Migdal owned 33% of the property, Menorah 32%, and Harbor Group 35%.

The 38,500-square meter 24-story office building is at Times Square at the northeast corner of West 39th Street and Broadway. Harbor Group increased the building's occupancy rate from 84% to 96%, after spending $10 million in upgrades to the lobby and base facade. All the building's tenants have extended their leases.

Harbor Group chairman and CEO Jordan Slone said, "Most of the value creation at 1412 Broadway was due to our ability to increase the building's occupancy rate and extend the current tenants' leases."

Harbor Group Israel CEO Jay Zweibel said, "We decided to sell 1412 Broadway because we saw a major improvement in the building and in the market in its Midtown location in recent years."

Published by Globes [online], Israel business news - www.globes-online.com - on March 16, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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