The partnership that picked up Midtown South’s historic Textile Building is spending nearly $300 million to reposition the property.
Tribeca Investment Group, PGIM Real Estate and Meadow Partners announced last week that they closed on the 99-year ground lease covering the 17-story building at 295 Fifth Avenue that has long been home to more than 150 textile showrooms.
The new owners said they plan to invest nearly $300 million to acquire and reposition the building. That works out to nearly $430 per square foot for the 700,0000-square-foot building.
“The thing we’re most excited about is the opportunity to buy a building with large floor plates,” Tribeca Investment Group co-founder Elliott Ingerman told The Real Deal.
Floor plates in the building are larger than 40,000 square feet. The new owners plan to invest in renovations including a new lobby, retail storefronts, mechanical upgrades and new amenity spaces.
Ingerman declined to comment on the value of payments over the life of the ground lease. Property records with the city put the figure at $375 million.
Tribeca Investment Group was founded by Ingerman and partner Bill Brodsky a few years ago after their partner at Tribeca Associates, Mark Gordon, launched his own vehicle to invest in hotel properties.
Ingerman and Brodsky teamed up with PGIM and Meadow Partners earlier this year to acquire the ground lease on the property from owner Manhattan Properties, as The Real Deal first reported.
A CBRE team led by Darcy Stacom and Bill Shanahan negotiated the deal for Manhattan Properties.
The new owners said in last week’s announcement that they plan to reposition the building as a Class A office tower, targeting finance and technology companies as tenants.