GreenOak Real Estate is the seller
L&L Holding Company and Normandy Real Estate Partners have closed on its acquisition of the Terminal Stores at 271 Eleventh Avenue in Chelsea from Waterfront New York and GreenOak Real Estate for $880 million, according to the company’s press release. The duo plans to spend $220 million to redevelop the property, and convert 500,000 square feet of storage facilities into office and retail space.
Financing: Blackstone Mortgage Trust provided a $650 million two-year loan (includes a 12-month extension) that finances the acquisition and the first phase of redevelopment. The partnership plans to add glass penthouse office space (100,000 SF) on top of the building.
The end-game: Selling the redeveloped asset after four years for $1.8 billion.
Flashback: Waterfront’s Coleman Burke paid $12 million for the property in 1983. In 2014, GreenOak bought a 49% stake that valued the property at around $300 million. The previous owners invested around $50 million since 2014 to improve the property. Nice job!