Bobby Zar's ZG Capital Partners has acquired the interconnected buildings at 827-831 Broadway, as well as the property at 47 East 12th Street in Greenwich Village, for $18.5 million in a distressed sale, sources confirmed to Commercial Observer. The acquisition signals a change of ownership in this historic Manhattan neighbourhood.
The transaction was negotiated by Brett Siegel, Maurice Suede, and Adam Spies of Newmark on behalf of the seller; Bobby Zar and James Tamborlane of ZG Capital led the transaction internally. The buildings, located on the eastern edge of Greenwich Village, south of Union Square, were sold for less than a third of the price they traded for just over a decade ago. This represents a significant depreciation in value.
Quality Capital and Caerus had acquired the four-storey buildings in 2015 for $60 million. At the time, there were plans to construct a 300-foot-tall, 14-storey office and retail building on the site, as reported by The Real Deal. These plans envisioned the demolition of the existing cast-iron structures and the construction of eleven office floors above three retail levels.
In May 2017, the then-owners recapitalised their investment with a $59 million loan from LoanCore Capital. However, their development plans were halted in October 2017 by the New York City Landmarks Preservation Commission. Following a campaign by Village Preservation to designate them as landmarks, the buildings at 827-831 Broadway received landmark status, preventing their demolition due to their cultural and historical significance. The building on 12th Street was not landmarked.
The buildings on Broadway indeed boast a rich history. In the 19th century, they housed the Wilson Sewing Machine Company, as well as A.A. Vantine, the first importer of Japanese art to the US. In the 1950s and 1960s, the upper floors of the Italianate-style structures designed by Griffith Thomas served as studios for prominent artists. This included the abstract expressionist Willem de Kooning, who painted his famous work "Pastorale" at 831 Broadway in 1963.
The new owners' plans for the buildings are currently unclear; ZG Capital did not respond to a request for comment. ZG Capital had previously acquired the building directly opposite at 836 Broadway in 2021. This transaction was also led by Newmark's Siegel. According to sources, Zar has since fully leased this building, which once housed New York University, with rents exceeding $100 per square foot.
