Upgrade boosts amenity value
Active asset management can even add value to an established office tower in central Manhattan. The development of ground floor and basement areas in the property at 140 Broadway in New York is creating new space for a café and a gym, thereby improving the user experience for tenants.
Summary
At approximately 200 metres tall, the 140 Broadway office building in the Downtown Manhattan submarket of New York is one of the best-known skyscrapers at this famous location close to Wall Street. It comprises 113,000 sq m of usable space spread across 50 storeys. So far, tenants have exclusively been big-name office users. Union Investment’s asset management team is currently using a temporary vacancy on one of the upper storeys to strategically optimise the user structure in the property.
The starting point
Ever since we acquired the property in 2004, the office building has featured space in the basement levels which offered long-term development potential. In addition, the ground floor of the property is potentially suitable for food outlets, especially as it is highly visible to passers-by coming from all directions.
As a result of a vacancy on the upper storeys, Union Investment was in a position to unlock the potential of the available space. Brown Brothers Harriman, the oldest private bank in the US and the largest tenant at 140 Broadway, took on the vacant space in addition to its existing offices in the building. In return, the tenant vacated space it had previously occupied on the ground floor.
The objective
The aim of the upgrade is to create new facilities in the property in order to improve the user experience for tenants, therefore maximising the likelihood that they will remain loyal to the property.
At the same time, the intention is to boost rental income from 140 Broadway in the interests of Investors.
“This upgrading exercise in the middle of New York delivers value for our tenants and investors alike.”
Ulrich Dischler, Head of Asset Management International
The solution
A new café will be installed on the ground floor by the end of 2017, with a gym being added by spring 2018, involving total investment of USD 8 million. The gym will be housed in previously unused basement space. Together, these new amenities will provide attractive leisure and break-time opportunities in the building. The entrance area is also located on the ground floor.
Working closely with the New York authorities, we have obtained all the necessary permits for the new usages in 140 Broadway.”
Bent Mühlena, Head of Real Estate Project Management
During the work, particular attention had to be paid to the building’s heritage-protected status. In addition, the requisite infrastructure for a food establishment and sports facility was installed in the property. The asset management team was also able to find the ideal tenants for the new space in New York's highly competitive real estate market.
Impressions of the property
Our image gallery contains more pictures of the 140 Broadway office building in New York.
