Normandy taking $100M majority stake in Dumbo Heights building

Invesco to be bought out of vacant property 175 Pearl at 1.2M BK complex

New York /
Mar.March 30, 2017 05:48 PM

UPDATED, 7:05 p.m., March 30: Normandy Real Estate Partners is set to close Friday on the $100 million purchase of a majority stake in 175 Pearl Street at Dumbo Heights, The Real Deal has learned. The 204,000-square-foot property, which has remained vacant for over a year, is part of the complex being developed by Kushner Companies, RFR Realty and LIVWRK.

Normandy, a New Jersey-based real estate investment firm, will take the lead on redevelopment and leasing efforts at the eight-story property. Kushner Companies, LIVWRK and RFR will move into a “single-digit” minority position, sources said. Invesco, which was an equity partner in the building, is being bought out, sources added.

It was not immediately clear if brokers were involved. Representatives for Kushner, RFR and Blackstone declined to comment, while Normandy and LIVWRK did not respond to requests for comment.

Normandy secured a $91 million acquisition and redevelopment loan from Blackstone Group for the deal, sources said. Of that amount, Normandy is receiving nearly $60 million in financing up front and the remaining funds if they invest $50 million in renovations.

In Manhattan, Normandy has been actively repositioning office properties, including 125 West 25th Street and 797-799 Broadway in Greenwich Village.

The Dumbo Heights developers tapped CBRE to lease the building over a year ago, but no leases have yet been signed.

Setting aside 175 Pearl, the complex has had success finding tenants such as WeWork, Etsy and Alexis Bittar. Earlier this month, the Guardian’s U.S. office scrapped plans to relocate to an unidentified building at Dumbo Heights, with BuzzFeed reporting that journalists were worried that the ownership’s ties to Jared Kushner may spook sources from communicating with them in the new office.

Laurent Morali became head of Kushner Companies in January after Jared, who had been the CEO of the development firm for over a decade, stepped down to take on a senior adviser role at the White House. Kushner Companies is now seeking a partner to redevelop its office skyscraper at 666 Fifth Avenue after Anbang Insurance Group backed out of talks. The firm is also in contract to sell four Astoria rental buildings for $76 million.

In 2013, Kushner, RFR, LIVWRK and Invesco paid $375 million for the Jehovah’s Witnesses buildings now known as Dumbo Heights. The complex holds about 1.2 million square feet of space.


Related Articles

arrow_forward_ios
Silvercup Studios in Long Island City, NY (Getty)

The rise of soundstage real estate, by the numbers

The rise of soundstage real estate, by the numbers
Charles Kushner and 18 Sidney Place (18 Sidney Place via StreetEasy)

Tenants get class-action status against Kushner in Brooklyn rent case

Tenants get class-action status against Kushner in Brooklyn rent case
Blackstone's Stephen Schwarzman and President Donald Trump (Getty)

Blackstone’s Schwarzman defends Trump on exec call

Blackstone’s Schwarzman defends Trump on exec call
Kushner Cos to sell Chicago office tower at sharp discount

Kushner Cos to sell Chicago office tower at sharp discount

Kushner Cos to sell Chicago office tower at sharp discount
Charles Kushner and 229 West 43rd Street (Getty, Google Maps)

Kushner Companies no longer delinquent on Times Square loans

Kushner Companies no longer delinquent on Times Square loans
Blackstone's Jonathan Gray, Madison Realty Capital's Josh Zegen (Getty; Madison; iStock)

Property debt investors raising money but still looking for distress

Property debt investors raising money but still looking for distress
Blackstone Group president Jonathan Gray (Getty)

Blackstone makes $1.2B deal with Brookfield for self-storage company

Blackstone makes $1.2B deal with Brookfield for self-storage company
Consumers are using streaming services more than ever, and data center real estate is booming (iStock)

Real estate for data centers is having a moment

Real estate for data centers is having a moment
arrow_forward_ios

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

Loading...