Taconic, Nuveen land $600M recapitalization for life sciences hub

$393M construction loan part of capital stack

New York /
Mar.March 12, 2021 06:00 PM
A rendering of 125 West End Avenue, Nuveen Real Estate managing director Nadir Settles and Taconic co-CEOs Charlie Bendit and Paul Pariser (Photos via Taconic, Nuveen)

A rendering of 125 West End Avenue, Nuveen Real Estate managing director Nadir Settles and Taconic co-CEOs Charlie Bendit and Paul Pariser (Photos via Taconic, Nuveen)

A major life sciences hub on the Upper West Side has completed a $600 million recapitalization.

Taconic Partners, in partnership with Nuveen Real Estate, has been at work to transform an office building at 125 West End Avenue, and recently secured $393 million in construction financing from Apollo Global Management and Oaktree Management, the Commercial Observer reported. In addition, as part of a $600 million capitalization, LaSalle Investment Management has joined the project as an $207 million equity partner.

A former Chrysler Corporation facility, the 400,000-square-foot property is located near the north end of the now-shrinking Automobile Row on the Far West Side of Manhattan. Until January, the eight-story building was occupied by Walt Disney/ABC. In 2018, the media giant sold its sprawling Upper West Side campus to Silverstein Properties for $1 billion, and Silverstein then sold three buildings in the portfolio, including 125 West End Avenue, to Taconic and Nuveen.

“The transformation of 125 West End Avenue into a state-of-the-art, life-science hub and our recapitalization of this project is a testament to the resilience of New York City and the promise of this emergent sector,” said Chris Balestra, Taconic’s president and chief investment officer.

JLL Capital Markets’ Evan Pariser and Geoff Goldstein arranged the construction loan. CBRE’s William Shanahan, Darcy Stacom and Steven Purpura negotiated LaSalle’s equity investment.

The life science sector has been a bright spot in the city’s office market in the pandemic. But because science and medical labs require special settings such as powerful electrical systems and enhanced ventilation, the lack of enough supply in the city caused life-science startups incubated in New York City to look for permanent locations in places such as Boston, experts have said.

“As Taconic and Nuveen set out to address the lack of supply of lab space in the market, we do so with confidence in our team and in the strength and resiliency of New York City,” Nadir Settles, Nuveen’s managing director, said in a statement. [CO] — Akiko Matsuda





    Related Articles

    arrow_forward_ios
    Thor Equities Group Chairman Joseph J. Sitt. (Thor)
    Thor facing foreclosure on Harlem rental building
    Thor facing foreclosure on Harlem rental building
    Photo illustration of Vornado CEO Steven Roth and Hotel Pennsylvania at 401 Seventh Avenue (Getty, iStock, Vornado)
    “Inevitable”: Vornado will demolish Hotel Pennsylvania
    “Inevitable”: Vornado will demolish Hotel Pennsylvania
    The rate of loans sent to special servicers continued to fall in March. (Unsplash)
    CMBS special servicing rate declines in March
    CMBS special servicing rate declines in March
    JLL CEO Christian Ulbrich. (Getty)
    JLL explores sale of China property management wing
    JLL explores sale of China property management wing
    Dollar General CEO Todd Vasos (Retail Industry Leaders Association, iStock)
    Dollar General thrives amid retail apocalypse
    Dollar General thrives amid retail apocalypse
    Bill Lee (Lee & Associates/YouTube)
    Lee & Associates founder Bill Lee dies
    Lee & Associates founder Bill Lee dies
    The vacancy rate for regional and superregional malls is at an all-time high.  (Getty)
    Mall vacancy rate hits all-time high
    Mall vacancy rate hits all-time high
    Mitchell Kossoff (iStock, Kossoff, PLLC/Illustration by Kevin Rebong for The Real Deal)
    Landlords seeking millions from real estate attorney who disappeared
    Landlords seeking millions from real estate attorney who disappeared
    arrow_forward_ios

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

    Loading...