L&L Holding Co. and Normandy Real Estate Partners bought the former warehouse-turned-office building in Chelsea for triple its last valuation.
Terminal Stores, which currently houses the offices of Uber and L’Oréal, among others, was valued at $300 million in 2014 when GreenOak Real Estate bought a 49 percent stake in Waterfront New York’s 1.2 million-square-foot building. The sale to L&L and Normandy, who teamed up as a joint venture for the deal, reflects the booming growth in the area, as the Wall Street Journal first reported.
CBRE‘s Darcy Stacom and Bill Shanahan represented the sellers in the deal.
Waterfront bought the property in 1983 for about $12 million and the owners invested $50 million into updating office and retail spaces since 2014.
L&L and Normandy reportedly plan to revamp the property’s interiors and convert 500,000 square feet worth of storage space into leasable area.
The deal comes after Google’s $2.4 billion all-cash purchase of Chelsea market earlier this year.
The Real Deal reported last year that L&L was teaming up with a domestic pension fund in preparation for a buying spree to the tune of $4 billion in New York City; they were on the prowl for new value-add deals, as L&L president Robert Lapidus put it then.
Meanwhile, Normandy was last reported to be looking for $440 million to refinance three office buildings it’s overhauling in the Financial District and Greenwich Village. [WSJ]