L&L and Normandy acquire Terminal Stores in Chelsea for $900M

The selling price is triple the building's last valuation

TRD WEEKEND EDITION /
Jul.July 29, 2018 05:02 PM

From left: David Welsh, Robert Lapidus, Terminal Stores. (Credit: Beyond My Ken, TRD)

 

L&L Holding Co. and Normandy Real Estate Partners bought the former warehouse-turned-office building in Chelsea for triple its last valuation.

Terminal Stores, which currently houses the offices of Uber and L’Oréal, among others, was valued at $300 million in 2014 when GreenOak Real Estate bought a 49 percent stake in Waterfront New York’s 1.2 million-square-foot building. The sale to L&L and Normandy, who teamed up as a joint venture for the deal, reflects the booming growth in the area, as the Wall Street Journal first reported.

CBRE‘s Darcy Stacom and Bill Shanahan represented the sellers in the deal.

Waterfront bought the property in 1983 for about $12 million and the owners invested $50 million into updating office and retail spaces since 2014.

L&L and Normandy reportedly plan to revamp the property’s interiors and convert 500,000 square feet worth of storage space into leasable area.

The deal comes after Google’s $2.4 billion all-cash purchase of Chelsea market earlier this year.

The Real Deal reported last year that L&L was teaming up with a domestic pension fund in preparation for a buying spree to the tune of $4 billion in New York City; they were on the prowl for new value-add deals, as L&L president Robert Lapidus put it then.

Meanwhile, Normandy was last reported to be looking for $440 million to refinance three office buildings it’s overhauling in the Financial District and Greenwich Village. [WSJ]


Related Articles

arrow_forward_ios

Small Talk: Every community meeting. About every development project. Ever.

Normandy Founder Finn Wentworth, Columbia CEO E. Nelson Mills, 799 Broadway and 250 Church Street (Credit: Google Maps)

Columbia acquiring Normandy for $100M in New York real estate’s latest megamerger

An example of roll-off waste management (Credit: YouTube, iStock)

A win for big building owners in trash-collection fight

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

Council member Vanessa Gibson (Credit: New York City Council)

Commercial landlords face new fines as City Council passes anti-harassment bill

As House begins impeachment inquiry, here’s what we know about Trump’s Ukraine-real estate ties

Embattled Prodigy Network CEO Rodrigo Niño to step down

The Watchtower building at 25 Columbia Heights, CIM Group’s Shaul Kuba (right) and LIVWRK’s Asher Abehsera (Credit: Wikipedia, CIM Group, and LinkedIn)

JPMorgan leads $335M refi for CIM and LIVWRK’s Watchtower renovation

arrow_forward_ios