Normandy, Columbia move ahead with $300M Greenwich Village office building

Partners finalize joint venture, land $187M construction loan from Apollo

TRD New York /
Oct.October 04, 2018 11:45 AM

From left: Apollo Global’s Leon Black, Columbia Property Trust’s Nelson Mills,  Normandy’s Finn Wentworth, and a rendering of 799 Broadway (Credit: Milken Institute via YouTube, Columbia Property Trust, and Normandy Real Estate Partners)

Development plans are moving forward for the latest office building to rise in Greenwich Village.

Normandy Real Estate Partners and Columbia Property Trust finalized their joint venture for their $300 million office development at 799 Broadway, and landed a $187 million construction loan from Apollo Commercial Real Estate Finance, the partners said Thursday.

The 12-story, 182,000-square-foot project would be the first new office building developed in the neighborhood since since Edward Minskoff’s 51 Astor Place. Sources said Normandy and Columbia have not yet secured an anchor tenant, and are moving forward with the project on spec.

Atlanta-based Columbia Property Trust closed on its purchase of a 50-percent stake in the development site, acquiring it from Normandy’s previous partner, Ares Management. Columbia’s equity stake in the site of the former St. Denis Hotel is valued at $142.5 million.

Newmark Knight Frank’s Dustin Stolly arranged the financing on behalf of the JV partners with his colleagues Jordan Roeschlaub, Nick Scribani and Chris Kramer.

Dustin Stolly and Jordy Roeschlaub

Work has already started at the construction site at the corner of Broadway and East 11th Street, and the building is expected to be completed by the summer of 2020.

Normandy and Columbia will target rents in the are of $140 to $160 per square foot. JLL is handling the leasing.

Cushman & Wakefield’s Adam Spies, Adam Doneger, Kevin Donner and Josh King represented Normandy and Ares in the sale of the partial stake to Columbia.

Doug Harmon and Adam Spies

It will be one of the few ground-up, Class A office buildings in Greenwich Village, and comparable to the 51 Astor Place building Minskoff developed in 2013.

That building has been derisively referred to by some as the “Death Star,” criticized as out of character for the neighborhood. But it has also been seen as setting a new benchmark for 21st century office space.

Normandy’s other office project in the area, the repositioning of the former ABC Carpet headquarters at 888 Broadway, has attracted tenants such as the Australian software company Atlassian and Netflix.


Related Articles

arrow_forward_ios
28 Liberty Street (Wikipedia)

Manhattan’s office leasing sees busiest month since January

Manhattan’s office leasing sees busiest month since January
Maison Kayser (Photo via Tools of Men via Flickr)

Maison Kayser may bid New York adieu

Maison Kayser may bid New York adieu
Vishaan Chakrabarti of Practice for Architecture and Urbanism and Hiten Samtani of The Real Deal (Getty)

Vishaan Chakrabarti on a Manhattan real estate market without private cars

Vishaan Chakrabarti on a Manhattan real estate market without private cars
From left: 799 Broadway, Columbia Property Trust CEO Nelson Mills and 149 Madison Avenue (Image by 799 Broadway; Mills and 149 Madison Avenue via Columbia Property Trust)

Columbia Property Trust sees leasing, revenue rise while buildings just 5% full

Columbia Property Trust sees leasing, revenue rise while buildings just 5% full
Newmark’s Brian Waterman with 7 Hanover Square (Google Maps, Twitter)

Newmark nabs REBNY prize for deal with NYC Health + Hospitals

Newmark nabs REBNY prize for deal with NYC Health + Hospitals
Vishaan Chakrabarti of Practice for Architecture and Urbanism and Hiten Samtani of The Real Deal (Getty)

The REInterview: What if Manhattan had four Central Parks’ worth of land to play with?

The REInterview: What if Manhattan had four Central Parks’ worth of land to play with?
The legislation from a City Council member introduced a bill to temporarily repeal the commercial rent tax for businesses during the Covid-19 state of emergency. (Getty, iStock)

Commercial rent tax cut introduced in City Council

Commercial rent tax cut introduced in City Council
Michael Rudder, James Nelson, 141 Wooster Street and 633 Third Avenue (Google Maps)

The Outlook: Industry experts break down Manhattan’s office condo market

The Outlook: Industry experts break down Manhattan’s office condo market
arrow_forward_ios

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

Loading...