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More Investors Sign On to 45 Broad St.

Madison Equities is taking on foreign partners for the skyscraper the New York development firm plans to construct at 45 Broad St. downtown.

Gemdale Properties and Investment, a developer in the Greater China region, will join Madison Equities and Italian real-estate company Impresa Pizzarotti & CSpA in building a 1,100-foot tower with 206 condo units and 59,000 square feet of office space, according to Robert Gladstone, chief executive of Madison Equities.

In its first New York project, Gemdale will serve not only as investor but also development partner, Mr. Gladstone said.

“We live in a global society; everything is a collaboration today,” Mr. Gladstone said. “This allows [Madison Equities] to buy materials from two submarkets and take advantage of the best materials, price and delivery.” The building’s curtain wall, he said, will be made in Europe.

Gemdale was drawn to the project partly because of the anticipated pricing for the residential condos, according to Mr. Gladstone. In response to a softening market for ultraluxury apartments, Madison Equities decided to include smaller apartments at lower price points.

“Ninety percent of the apartments fall into $4 million and below pricing, with some priced below $1 million,” Mr. Gladstone said. “No one is doing that in Manhattan for new luxury development.”

Mr. Gladstone declined to disclose the price of the project and said structural costs are still being calculated. The venture plans to break ground this fall and anticipates construction to last about three years.

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http://www.wsj.com/articles/whats-th...ase-1466383356