New York City — A partnership between L&L Holding Co., Normandy Real Estate Partners and an institutional investor advised by J.P. Morgan Asset Management has acquired Terminal Stores, a 1.2 million-square-foot complex in the West Chelsea neighborhood of Manhattan, for $880 million.
Constructed in 1891, Terminal Stores originally served the railroad lines that dominated the middle Hudson River waterfront. Coleman Burke of Waterfront NY purchased the complex in 1983 and converted it into self-storage and office space. Current tenants include Uber Technologies Inc., L’Oréal USA and architectural firm Grimshaw.
The property spans the entire block bounded by 11th Avenue, 12th Avenue, West 27th Street and West 28th Street.
The partnership plans to transform the former warehouse complex into an office and retail development. Plans call for the conversion of approximately 500,000 square feet of self-storage space into Class A office use.
Darcy Stacom and Bill Shanahan of CBRE represented the seller, a joint venture between Waterfront New York and GreenOak Real Estate Advisors LP. James Millon, Tom Traynor, Ethan Gottlieb and PJ Finley of CBRE Debt & Structured Finance arranged the $650 million acquisition financing on behalf of the borrower.
Manhattan-based L&L is a privately owned real estate investment company with a current portfolio exceeding 9 million square feet of office space. Normandy is a real estate investment management firm and operator with offices in New York City, Boston, Washington D.C. and New Jersey. The firm focuses on acquiring office and mixed-use investments.
— Kristin Hiller