Safehold pays $77.5M to Haddad Brands for fee under Yucaipa’s NoMad hotel

Safehold Inc. through the entity 1164-1172 Broadway Ground Owner LLC paid $77.5 million to Haddad Brands through the entity Haddad Nomad LLC for the ground-leased fee under Yucaipa Companies’ NoMad Hotel (HB) at 1170 Broadway in Nomad, Manhattan.
The deal closed on October 14, 2021 and was recorded on October 27, 2021.
The property has 112,608 square feet of built space and 22,097 square feet of additional air rights for a total buildable of 134,740 square feet according to PincusCo analysis of city data. The sale price per built square foot is $687 and the price per buildable square foot is $574 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for Haddad Brands was John Spielberger. The signatory for Safehold Inc. was Douglas Heitner and Marcos Alvarado.

The seller was an affiliate of the Haddad Organization, or Haddad Brands, a global apparel company based in New Jersey. The Haddad family company was founded in 1948. The Haddad Organization, as it was known at the time, signed a 99-year lease with a start date of March 4, 2008, ending January 29, 2107, with Allen Gross’s GFI Capital Resources Group.  The ground lease is owned by Ron Burkle’s Yucaipa Companies. The most recent debt the Haddads had on the fee was an $8.5 million loan from Wells Fargo given in 2015, which was paid off in 2018.

In July Yucaipa signed an $80 million refinance loan on the property.

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