Normandy, Drake Street refi LIC
warehouse-to-office conversion
with $75M Deutsche loan

Partners will use a portion of financing to complete leasing at 170K sf project

TRD New York /
Dec.December 07, 2018 02:30 PM

Travis Feehan and 47-11 Austell Place

Normandy Real Estate Partners is moving ahead with the next phase of one of its warehouse-to-office redevelopments in Long Island City, where investors are looking to cash in on the spillover effect from Amazon’s planned move to the neighborhood.

Normandy, along with co-investor Drake Street Partners, scooped up a $75 million loan from Deutsche Bank to refinance the former printing plant they’re redeveloping at 47-11 Austell Place, representatives for the project told The Real Deal.

The five-year, floating-rate financing replaces existing debt on the property, and gives the sponsors additional finish leasing and complete the renovation from a “vacant industrial building into a highly coveted, best-in-class creative office asset,” said Newmark Knight Frank’s Dustin Stolly, who helped arrange the financing.

Jordan Roeschlaub and Dustin Stolly

Normandy and Drake Street bought the 138,000-square-foot industrial building for $35 million in 2015 from Francis Greenburger’s Time Equities, which a year earlier had signed a 40,000-square-foot lease with Mitchell’s NY, a family owned company that delivers publications such as the New York Times, the Wall Street Journal and The Real Deal.

The taking rent in the seven-year deal was reportedly $20 per square foot.

The new owners financed the acquisition and first phases of construction with more than $35 million from SL Green Realty’s debt arm (which last year sold a piece to Pacific Western Bank) and overhauled the building into loft-style offices, adding an additional 32,000 square feet of new office space and amenities like a landscaped rooftop terrace.

Newmark’s Jordan Roeschlaub, who worked on the team alongside colleagues Nick Scribani and Chris Kramer to arrange the new financing, said the project is “well-positioned to capture incremental demand from Amazon’s commitment to Long Island City.”

The Austell Place development is one of several projects Normandy’s staked out over the past few years in Long Island City.

Just two blocks away, the New Jersey-based firm is working on a similar redevelopment of a warehouse at 25-11 49th Avenue, dubbed Gantry Point, which is another project it’s teamed up on with Drake Street. Earlier this year, the partners got an $81 million construction loan for the project, also from Deutsche Bank.

On the other side of Long Island City in the neighborhood’s Court Square section – closer to where Amazon will initially lease 1 million square feet at Savanna’s 1 Court Square office tower – Normandy last year paid about $54 million to buy a stake in Leon Kassabian’s Kassabian Realty’s 130,000-square-foot warehouse at 43-10 23rd Street. The owners are redeveloping the property into a 195,000-square-foot office building.


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

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

Blackstone Chairman Stephen Schwarzman (Credit: Blackstone via YouTube)

It will make you laugh, it will make you … cringe: Blackstone’s latest holiday video

A rendering of 22-43 Jackson Avenue (Credit: StreetEasy)

Trader Joe’s heading to Long Island City, brokers confirm

Paul Volcker (Credit: Getty Images)

Paul Volcker, Fed Chair who infuriated real estate, dies

Renderings of The William Vale and Denizen Bushwick with a Tel Aviv Stock Exchange ticker

All Year eyes sale of William Vale to pay off bonds

From left: Simon Baron Development's John Simon, TF Cornerstone's Frederick Elghanayan, and MaryAnne Gilmartin (Credit: Getty Images)

Plaxall joins planning group for post-Amazon development

A&E Real Estate Holdings principal Douglas Eisenberg and the properties (Credit: The Rego Park 18 Portfolio)

Deutsche Bank provided A&E $97M in financing for big Rego Park buy

arrow_forward_ios
Loading...