The Real Deal New York

TIAA in contract to buy 115K sf commercial condo for $67M

Aion Partners has owned the AG-anchored space at 86 Chambers St. for 13 years
By Mark Maurer | Twitter_logo_blue copy July 24, 2017 06:45PM

86 Chambers Street and TH Real Estate’s Chris McGibbon

TH Real Estate, the global real estate arm of TIAA Global Asset Management, is in contract to buy an 115,000-square-foot commercial condominium at the base of a Tribeca residential building along Chambers Street for $67 million, sources told The Real Deal.

The office-and-retail condo at 86 Chambers Street occupies the first seven floors of the 300,000-square foot, 28-story residential property known as Tower 270. The seller is Michael Betancourt and Siraj Dadabhoy’ Aion Partners, which put it on the market in February. Aion has owned the condo since 2004.

The deal is expected to close in the next two or three months. The price would come out to about $582 per square foot.

The condo is 97 percent leased, with most of the space leased to the New York state Attorney General’s office, according to marketing materials. That lease expires in 2023. A JPMorgan Chase bank branch anchors the retail portion.

A Colliers International team led by Richard Baxter, Yoron Cohen and Scott Latham represented the seller in the transaction. Colliers also recently brokered the Kabbalah Centre International’s pending $60 million purchase of the Fine Arts Building in Midtown.

The brokers declined to comment, and neither representatives for TIAA nor Aion could be immediately reached.

Many of Manhattan’s commercial condos – from Vornado Realty Trust’s 11 East 68th Street to the State Teachers Retirement System of Ohio’s 15 Union Square West – have sat on the market for months. Savanna’s 10 Madison Square West, one of the few retail condos to trade, sold to TH Real Estate earlier this year for $97.5 million.