After Jay-Z Closes The 40/40 Club, Rockrose Sells 12% Stake In Building For $44M
Rockrose Development has sold its stake in a Flatiron building that was, until this month, home to rapper Jay-Z’s famed nightclub for two decades.
Adams & Co. bought the 12% stake in the building at 1115 Broadway for $43.5M, according to city property records. The Manhattan-based brokerage and investment firm has taken full control of the building after having long held a majority stake in the property, Adams & Co. principal David Levy said in an email.
Apple Bank provided a $48M loan for the purchase, Commercial Observer reports. Rockrose bought it in 2020 for $26.1M. The stake sale would value the entire property at roughly $363M.
The 12-story, 252K SF office building is home to Taboola, a digital advertising firm, and Poppin, a furniture company with an office and showroom spanning nearly 9K SF. Taboola signed on for 50K SF in 2018, and it isn't clear if there has been any change to its footprint, per CO.
In 2003, Brooklyn-born rapper Jay-Z opened his 40/40 Club in 12K SF at the property, the original location of what became a chain with locations across the country. Over the years, the Flatiron location hosted parties for LeBron James' birthday and rapper J. Cole's mixtape release, according to Eater. The club plans to reopen in a new location next February.
Levy said in the email the sale was unrelated to the 40/40 Club's closure as the landlords have had a tenant lined up to backfill the space.
There have been few trades in New York this year, with the city on pace to see just $10B of sales compared to a 10-year average of $34.2B, according to Avison Young.
There have been some high-profile trades, however. The Flatiron Building, for example, sold at auction for $161M to Jeff Gural in May, ending a protracted legal battle over the future of the property.
CORRECTION, AUG. 25, 4:50 P.M. ET: A previous version of this story incorrectly reported that the entire building at 1115 Broadway sold in the transaction. It was a sale of a 12% stake in the property. This story has been updated.
