Feb. 13 (Bloomberg) -- Manhattan’s Brill Building, where songwriters such as Burt Bacharach and Neil Diamond penned pop hits, is being sold to investors led by Allied Partners Inc., who plan to redevelop its office and retail space.
The group will pay about $200 million for the property at 1619 Broadway, three blocks north of Times Square, to an Invesco Ltd. fund by the end of June, said a person briefed on the deal who was not authorized to speak publicly. New York-based Stonehenge Management LLC is Invesco’s partner in the building.
The buyers intend to modernize the 175,000-square-foot (16,300-square-meter) property “into a premier retail and specialty office building,” New York-based Allied said in an e-mailed statement. They plan to renovate the upper floors and create offices designed to appeal to entertainment-industry tenants, the company said.
The property has housed Colony Records for about four decades and was a bastion of American popular songwriting during the early 1960s, according to the website nycgo.com. The building at the corner of 49th Street, named after a clothing store that once occupied part of it, is located in an area popular with tourists and filled with retailers and restaurants.
Colony planned to close its record store in the building as a shift to digital music sales led to a decline in revenue, the New York Times reported on Aug. 23.
Allied Partners, founded in 1993 by investor Eric Hadar, specializes in redeveloping properties including hotels, retail, and office and multifamily residential buildings, mostly in Manhattan.
Jessica Proud, a spokeswoman for Stonehenge at public relations firm Nicholas & Lence Communications LLC, declined to comment on the transaction. Bill Hensel, a spokesman for Atlanta-based Invesco, didn’t respond to a telephone call and e-mail.
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