Inside L&L, Normandy’s plan to turn Terminal Stores into a $1.8B property

Developers proposing 100K sf of new penthouse space atop landmarked property

New York /
Oct.October 24, 2018 02:30 PM

A rendering of Terminal Stores at 271 11th Avenue and L&L Holding Companies’ Rob Lapidus and David Levinson (Credit: Getty Images)

L&L Holding Company and Normandy Real Estate Partners are proposing to turn the Terminal Stores warehouse in West Chelsea into a $1.8 billion property in four years.

The partners, who closed on their $880 million purchase of the block-sized building Wednesday, plan to spend an additional $220 million to renovate the property, according to investor deck reviewed by The Real Deal.

The designs, which approvals from the city Landmarks Preservation Commission, call for the creation of 100,000 square feet of glass penthouse space on top of the building.

The developers’ proposal includes carving out “an abundance of light-wells” placed strategically throughout the building’s interior, and creating a wrap-around outdoor terrace on the roof. The project’s setup is estimating rents of $135 per square foot for the penthouse office space.

“One of the central features of the business plan is the introduction of a through building cut-through to create a courtyard (similar to the Empire Stores building in Dumbo) – which would allow more light into the central interior of the building, providing the opportunity to add floor-to-ceiling glass spaces facing the courtyard and to create terraces along the cut-through,” the project set-up explains.

L&L and Normandy, who declined to comment through a spokesperson, are also planning to create a Chelsea Market-style retail corridor and convert 500,000 square feet of storage space to office use.

After a four-year holding period, they are projecting an exit price of $1.8 billion.

The project’s architect is COOKFOX, which designed Oxford Properties Group and the Canadian Pension Plan’s renovation of the St. John’s Terminal near Hudson Square.

The partners announced in a press release Wednesday that Blackstone Mortgage Trust provided a $650 million acquisition loan for the project at 261 Eleventh Avenue.

The debt has a term of two years with a 12-month extension option, Commercial Observer reported.

L&L and Normandy also announced that a large institutional investor advised by JP Morgan had contributed equity into the deal. Last year, L&L launched a $500 million fund with $4 billion worth of purchasing power with JP Morgan as an adviser to the California State Teachers Retirement System, which reportedly was investing $100 million in equity into Terminal Stores.


Related Articles

arrow_forward_ios
Steve Witkoff and Ian Schrager in front of the iconic PUBLIC hotel escalators. (PUBLIC, Getty)
EB-5 fund alleges Schrager, Witkoff siphoned money from Public Hotel
EB-5 fund alleges Schrager, Witkoff siphoned money from Public Hotel
Best Buy has closed about 20 of its big-box stores in each of the past two years (iStock)
Best Buy lays off 5,000 staffers, increases store closures
Best Buy lays off 5,000 staffers, increases store closures
Ryan Serhant and Gary Barnett on Development Slowdown in Pandemic
Coffee Talk: Extell’s Gary Barnett and Ryan Serhant
Coffee Talk: Extell’s Gary Barnett and Ryan Serhant
Cushman & Wakefield CEO Brett White
Cushman reports 10% drop in revenue in 2020
Cushman reports 10% drop in revenue in 2020
Central Queens Academy's Ashish Kapadia and United's Chris Jiashu Xu with a rendering of 88-08 Justice Avenue (Linkedin, iStock)
Charter school takes 85K sf in Queens condo building
Charter school takes 85K sf in Queens condo building
(IStock illustration by Kevin Rebong)
Smaller cities look to cash in on shift to remote work
Smaller cities look to cash in on shift to remote work
421-427 East 14th Street (Google Maps, iStock)
Stuy Town to get new 17K sf grocery store
Stuy Town to get new 17K sf grocery store
Photo illustration of Mayor Bill de Blasio as Uncle Sam (iStock, Getty/Illustration by Kevin Rebong)
NYC has $1.3B in unpaid property taxes
NYC has $1.3B in unpaid property taxes
arrow_forward_ios

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

Loading...