Meadow Partners purchased a 99-year lease on an office building in the Meatpacking District for about $230 million.
The investment firm closed on its purchase of 860 Washington Street at the end of 2020, according to the Wall Street Journal. According to the terms of the deal, Meadow will control the building but pay ground rent to Romanoff Equities, one of the building’s co-developers.
The building “is very well-leased for the long-term,” Jeffrey Sussman, chief executive of Property Group Partners, told the Journal. “That’s an attraction in a market of uncertainties.”
The building was developed in 2013 by a group venture that included Property Group Partners and Romanoff, which owns a number of properties in the Meatpacking District. Romanoff recently acquired the 120,000-square-foot tower from its co-developer in a sale-leaseback deal that valued the building at $80 million.
A Cushman & Wakefield team led by Doug Harmon, Adam Spies and Kevin Donner advised on the deal.
Its tenants include Tesla, which has a ground-floor showroom, and the SoftBank-backed online lender SoFi.
The deal is one of the few office transactions to take place during the pandemic. As of the end of November, only $5.5 billion of Manhattan office properties had been sold in 2020, according to Real Capital Analytics. During the same period in 2019, that number was $13.3 billion.
[WSJ] — Sasha Jones