Dealmaker: L&L Holding, Normandy Real Estate Partners Buy Manhattan Offices for $900M
L&L Holding Co., New York, and Normandy Real Estate Partners, Morristown, N.J., agreed to buy the Terminal Stores building on Manhattan’s West Side for $900 million.
Waterfront NY and GreenOak Real Estate Advisors LP sold the property at 224 12th Ave. in the Chelsea neighborhood near Hudson Yards. CBRE Chairs Darcy Stacom and Bill Shanahan represented the sellers.
The asset occupies an entire block bounded by Eleventh Avenue, Twelfth Avenue, West 28th Street and West 27th Street. It ranges from seven to nine stories with one basement level.
The Wall Street Journal reported the transaction price tripled the property’s valuation from just four years ago. It said Waterfront Founder Coleman Burke and investors paid $12 million in 1983 for the 1891-vintage property. GreenOak bought 49 percent of the property for $300 million in 2014.
Built to serve railroad lines in the nearby middle Hudson River waterfront, the 1.2-million-square-foot property served as a warehouse until Waterfront NY and GreenOak Real Estate Advisors converted it to an office building beginning in 2014. The Real Deal New York said Uber, L’Oréal Cosmetics and other firms currently occupy the property.
Railroad tracks originally ran through the ground floor from Twelfth Avenue to Eleventh Avenue. Today, this space is called The Tunnel and both sides are lined with restaurants, galleries and offices. In the 1980s a nightclub called The Tunnel occupied the space. The nightclub played a role in author Bret Easton Ellis’ novel American Psycho.
