T
he notion that tenant departures and loan expirations at a single office building are a harbinger of doom may one day be debunked by the real-estate media. Take 568 Broadway, a 12-story Soho landmark owned by Eric Hadar's Allied Partners and Bobby Cayre's Aurora Capital for nearly two decades.

    Last fall, Moody's warned that Group Nine Media's exit would significantly impact cash flow due to the building's remaining 100,000 square feet of vacant space. However, this didn't spell disaster for the 330,000-square-foot property. Its retail spaces are occupied by high-end tenants like Equinox and BOSS athletic-good store.

    A $200 million mortgage loan was successfully restructured in February, providing capital to improve the building. According to Midtown South sources, a lease has already been secured for 60,000 square feet with an unidentified office tenant. Newmark's Brett Harvey, who represents the owners, notes that the market has changed since the pandemic and the owners are now capitalizing on rising demand.

    The property boasts large floor plates of 30,000 square feet, making it suitable for big users, and its unique feature is having windows on three sides. An estimated $50 million capital upgrade is underway, including new lobbies, elevator modifications, and a revamped roof deck designed by Studios Architects.

    As the building undergoes renovations, Harvey sees an opportunity to push rents upwards, targeting prices between the mid-$80s per square foot and around $120 psf.