Swiss pension fund to buy Normandy’s Chelsea office building for $150M

Top five floors of 138K sf property leased to cycling startup Peleton

New York /
Sep.September 09, 2016 08:00 AM

UPDATED, 12:44 p.m., Sept. 9: The U.S. real estate arm of Swiss pension fund AFIAA is in contract to pay $150 million for a 12-story Chelsea office building, just three years after Normandy Real Estate Partners rescued the then-vacant property from foreclosure, sources told The Real Deal.

Normandy TRData LogoTINY and partners Waterbridge Capital and Japan-based NTT Urban Development have been in the process of giving the 138,000-square-foot Class A property at 125 West 25th Street a $20 million upgrade. Indoor cycling fitness startup Peloton signed a lease late last year for 40,750 square feet across the top four floors of the building.  Then, earlier this month, the company tacked on an extra floor, growing to roughly 52,600 square feet total.

The all-cash deal is slated to close for north of $1,000 per square foot. The $150 million price is nearly triple the $54.5 million that Normandy paid for it at a foreclosure auction in 2013.

Eastdil Secured’s Adam Spies and Doug Harmon represented the sellers. Broker Samuel Lefkowitz is brokering the deal. They declined to comment, as did Normandy. A representative for AFIAA could not be reached.

The Swiss investors have been increasingly allotting funds for foreign real estate purchases, in the U.S. and elsewhere. AFIAA began expanding into the U.S. in 2005. The real estate purchase is AFIAA’s first in New York City, though the fund has made acquisitions in Philadelphia and Washington, D.C.

Normandy, a Morristown, N.J.-based real estate investment firm founded by Finn Wentworth and David Welsh, recently closed on the $101 million purchase of a Greenwich Village office building at 797-799 Broadway in partnership with Ares Management.


Related Articles

arrow_forward_ios
Closing time: HFZ vacates the XI sales gallery in Chelsea
Closing time: HFZ vacates the XI sales gallery in Chelsea
Closing time: HFZ vacates the XI sales gallery in Chelsea
From left: Furnished Quarters' Steven (left) and Gary Brown with 315 West 33rd Street (left) and 158 West 27th Street (Furnished Quarters, CityRealty, CityFeet)
Landlords sue hospitality stalwart Furnished Quarters
Landlords sue hospitality stalwart Furnished Quarters
Ira Drukier with the Hotel Chelsea (Getty, Patrick McMullan/Getty)
Chelsea Hotel owners sue city for $100M over renovation delays
Chelsea Hotel owners sue city for $100M over renovation delays
Bed Bath & Beyond at 620 6th Avenue and CEO Mark Tritton (Google Maps; Getty; iStock)
Bed Bath & Beyond will renovate, not close, Chelsea store
Bed Bath & Beyond will renovate, not close, Chelsea store
A rendering of 556 West 22nd Street (Photo by BASIS Independent Schools)
Private school to expand in former Chelsea Art Museum building
Private school to expand in former Chelsea Art Museum building
HFZ Capital’s condo the XI has sold 38 of its 236 units (iStock)
HFZ’s Chelsea condo now effective, with 16% of units sold
HFZ’s Chelsea condo now effective, with 16% of units sold
Waterbridge JV shops 1M sf DTLA mixed-use complex
Waterbridge JV shops 1M sf DTLA mixed-use complex
Waterbridge JV shops 1M sf DTLA mixed-use complex
Clockwise from left: 432 West 19th Street, 61-15 Metropolitan Avenue in Ridgewood, 45 West 39th Street and 1518 Macombs Road in the Bronx (Google Maps)
Chelsea and Bronx purchases power mid-market i-sales
Chelsea and Bronx purchases power mid-market i-sales
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...