498 Seventh Avenue
New York, NY
Currently located in New York City’s Time Square South submarket, Loeb acquired 498 7th Avenue, a 878,604 sf office building, in March 1997 when the property was 50% vacant and the garment industry was relocating out of NYC. As a result, the property was purchased at a discount price with a passive joint venture partner. Loeb completed significant capital improvements on the property, including the installation of a new lobby, new windows and substantial HVAC and elevator improvements. Loeb also successfully completed a major 400,000 sf leasing program within the first 12 months of ownership including leasing 200,000 sf to a major advertising firm as lead tenant, with an additional 200,000 sf leased to other corporate tenants. The acquisition and redevelopment of 498 7th Ave was initially financed with a bridge/acquisition loan that was most recently financed in 2011 for a principal amount four times that of the original loan. The redevelopment and releasing of this property has been cited as the transaction which pioneered the transformation of the “garment center” district to an office area now referred to as Time Square South.