This pension fund is providing L&L with equity for its Terminal Stores buy

The fund will likely provide at least $100 million

TRD New York /
Aug.August 22, 2018 02:15 PM

Terminal Stores at 271 11th Avenue and California State Teachers’ Retirement System CEO Jack Ehnes (Credit: Curbed NY and CalSTRS)

Part of the equity for Chelsea’s massive Terminal Stores deal will likely come from the California State Teachers’ Retirement System.

The fund is expected to provide at least $100 million of equity for the purchase, according to Bloomberg. A unit of JPMorgan Chase is representing the fund, which will partner with L&L Holding Co. on the deal.

L&L and Normandy Real Estate Partners bought Terminal Stores from GreenOak Real Estate for about $900 million earlier this summer, which was triple the last valuation of the building. However, Normandy is not part of the joint venture between CalSTRS and L&L.

The companies plan to convert the warehouse into office space and revamp its interiors.

A report from CalSTRS said it allocated up to $500 million to a fund administered by JPMorgan last year. The fund makes fairly conservative investments with low returns.

1stdibs.com, an online marketplace for high-end interior design, recently signed a four-year sublease for more than 40,000 square feet at the Terminal Stores building. Other building tenants include Uber and L’Oréal USA.

Brokers previously told The Real Deal that they believe the investments ales market in Chelsea will remain active, but they do not think enormous deals like the one for Terminal Stores or Google’s $2.4 billion purchase of Chelsea Market will become the neighborhood’s new normal[Bloomberg] – Eddie Small


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Joseph Tabak

Portrait of a deal junkie: The Joseph Tabak story

Portrait of a deal junkie: The Joseph Tabak story
Matt Borstein, Deutsche Bank’s global head of CRE, is moving to Oak Hill Advisors (Photo via Deutsche Bank)

Deutsche Bank’s CRE head moves to Oak Hill Advisors

Deutsche Bank’s CRE head moves to Oak Hill Advisors
Bank OZK CEO George Gleason (Unsplash; Bank OZK)

Bank OZK’s lending up in third quarter

Bank OZK’s lending up in third quarter
WeWork CEO Sandeep Mathrani (Wikipedia Commons; iStock)

WeWork bonds, already junk, downgraded by Fitch

WeWork bonds, already junk, downgraded by Fitch
(Getty, iStock)

Cash-strapped borrowers are increasingly giving keys back to lenders

Cash-strapped borrowers are increasingly giving keys back to lenders
Craig Solomon

The REInterview: Square Mile’s Craig Solomon on his big bet on studio space, today’s capital stack and the dangers of socialism

The REInterview: Square Mile’s Craig Solomon on his big bet on studio space, today’s capital stack and the dangers of socialism
arrow_forward_ios

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

Loading...