Sentry Realty, 60 Guilders Buy Midtown South Office for $76M

Sentry Realty and 60 Guilders are getting right back to it with another office acquisition in Manhattan.

Kevin Chisholm’s 60 Guilders and Sentry — the real estate arm of American Exchange Group — purchased 1370 Broadway in Midtown South for $75.5 million, the Commercial Observer reported. Invesco Real Estate sold the property.

Fortress Investment Group provided an acquisition loan of around 65 percent loan-to-cost. Newmark’s Jordy Roeschlaub and Nick Scribani were among those who negotiated the financing.

A Newmark team including Adam Spies and Adam Doneger helped to arrange the sale.

The sales price represented a $100 million discount from the $186 million Invesco paid to acquire the property in 2014. When the firm bought the building, it took out a $75 million loan from Principal Life Insurance.

Two tenants signed deals for 75,000 square feet at the property before the sale closed, though their identities haven’t been revealed. In total, 119,000 square feet is leased at the property, which is located between West 36th and West 37th streets.

Sentry and 60 Guilders are familiar partners. Two months ago, they bought a 26-story Art Deco office building at 292 Madison Avenue for about $90 million. Similar to the situation at nearby 1370 Broadway, the buyers took advantage of distress in the market to make its move, picking up the Madison Avenue property for about half the price the Vanbarton Group paid in 2016 (before it embarked on renovations).

American Exchange is a fashion manufacturing company that has made its presence known in commercial real estate in recent months.

This month, American Exchange closed on an acquisition of 1375 Broadway, which came months after Alen Mamrout’s firm acquired the note backing the Herald Square office building. Savanna, the seller in the deal, is continuing to operate the 27-story, 465,000-square-foot property.

— Holden Walter-Warner