The investors have had around $255 million spent on their behalf in a deal that will see them take collective ownership of 49 per cent of 1540 Broadway in Times Square, New York.
HSBC Alternative Investments Ltd (Hail) has brokered the deal on behalf of its investors and has secured an option to buy the remaining 51 per cent of the office space site, which is currently owned by an investment arm of CB Richard Ellis.
Most of the 900,000 square feet of New York office space at the Midtown site is currently occupied by 21 different tenants, and Hail will aim to have the rest of the property occupied in the months to come, Reuters reports.
Only six per cent of the relevant rental arrangements are due for renewal over the next seven years, and efforts are set to bring the rents at 1540 Broadway into line with typical rates for office space in and around Times Square.
Office space in New York is among the most sought-after in the world, as was confirmed recently by a study from Colliers International.
The commercial property firm reported that New York, along with Chicago, San Francisco and Washington, DC, is one of the locations that office space investors from around the world are most keenly considering for expansion opportunities in 2011.
Editor’s notes: As of 2023, the building was effectively divided into two ownership units. Hail and Edge Funds Advisors own the office space, while Vornado Realty Trust owns retail space on the ground floor.
The landlords renovated the building in 2019 at a cost of $40 million with improvements including an eighth-floor amenity room and new elevators.
In the same year, tenant Adobe quadrupled its footprint to 109,296 square feet. The creative software company renewed its lease on the 17th floor and signed a lease for space on the 18th, 19th, and 20th floors at the same time.
In March 2026, it was reported that GFP Real Estate and BDT & MSD Partners acquired 1540 Broadway in 2025 and two deals – Pandora Jewelry LLC doubling its office space to 55,872 square feet and Korea-based Woori Bank New York Agency signing a new lease for 18,553 square feet, took the building to 50 per cent occupied.
At the time of the deals, GPF principal Brian Steinwurtzel advised, “We’re turning it into one of Midtown’s most amenitized buildings” – including a 45,000-square-foot wellness facility on the entire eighth floor and a private dining club on the 36th floor.
As of June 2026, after years of growing demand, there were over 50 flex-space providers in Manhattan offering alternatives to the leased office space at 1540 Broadway and other office buildings.
While offices held under a lease are suitable for many businesses, others prefer the flexibility of short-term contracts and the efficiencies of all-inclusive pricing.
Profiles of flexible workspace operators in Manhattan are available here.