Allianz looks to take 30% stake in massive Terminal Stores deal

L&L Holding and Normandy Real Estate purchased site for $900M this summer

TRD NEW YORK /
Dec.December 06, 2018 05:00 PM

Terminal Stores and Christoph Donner

L&L Holding Company and Normandy Real Estate Partners are about to get another partner on their massive Terminal Stores deal.

Allianz Real Estate of America is closing in on a deal to take a roughly 30 percent stake in the building, according to sources familiar with the deal. L&L and Normandy had purchased the Chelsea building over the summer for about $900 million, triple its prior valuation.

The move by Allianz would value the 1.2 million-square-foot site at about $733 per square foot — the same as the purchase price — and Allianz would also fund part of the $520 million in equity from JPMorgan, acting as an adviser to the California State Teachers Retirement System.

Real Estate Alert was the first to report the deal.

Terminal Stores was last valued at $300 million in 2014, when GreenOak Real Estate bought a 49 percent stake in the building. Waterfront New York bought the site in 1983 for roughly $12 million.

L&L and Normandy plan to turn the warehouse into a property worth about $1.8 billion in the next four years. Their designs call for creating 100,000 square feet of glass penthouse space atop the building, and they hope to get rents of about $135 per square foot.

The companies also want to create a retail corridor similar to Chelsea Market and convert 500,000 square feet of storage space into office space. COOKFOX will design the project.


Related Articles

arrow_forward_ios
Simon Property Group CEO David Simon David Simon (Credit: Mireya Acierto/Getty Images, iStock)

Retail rout continues as Simon furloughs a third of employees

Almost 50,000 retail stores have closed across the country, and the restaurant industry has lost $25 billion in sales since March 1, (Credit: Getty Images)

US will see $20B in retail loans come due starting this week

(Credit: iStock)

NY restaurants, hotels warn of mass layoffs as US sees record jobless claims

Charles and Jared Kushner and 229 West 43rd Street (Credit: Getty Images and Google Maps) 

Pandemic may finally push Kushner Cos’ Times Square retail space into default

Ben Ashkenazy, CEO of Ashkenazy Acquisition Corporation and 660 Madison Avenue (Credit: Google Maps)

Eataly in talks with Ashkenazy to gobble up some of Barneys space

Ample Hills Creamery co-founders Brian Smith and Jackie Cuscuna with Ample Hills Creamery Gowanus at 305 Nevins Street (Smith and Cuscuna by Ilya S. Savenok/Getty Images for NYCWFF; Google Maps)

Ample Hills Creamery files for bankruptcy

During de Blasio’s state of the city address last month, the mayor proposed a vacancy tax once again, in a bid to tackle the city’s 12,000 empty storefronts. (Credit: Getty Images, iStock)

San Francisco passed a tax on vacant storefronts. What does that mean for NYC?

American Dream Mall (Photo by TIMOTHY A. CLARY/AFP via Getty Images)

$5B American Dream to shut through the month

arrow_forward_ios
Loading...