The investment firm is joining L&L Holding Company and Normandy Real Estate Partners in the deal
Allianz Real Estate of America is nearing a deal to buy a 30 percent stake in the redevelopment of Terminal Stores at 271 Eleventh Avenue, according to the RealEstateAlert. They would join L&L Holding Company and Normandy Real Estate Partners who paid $880 million for the Chelsea property in October.
Worth Noting: The deal would value the 1.2 million SF office and retail project at the same price paid by L&L and Normandy. Allianz plans on funding part of the $520 million in equity provided by CalSTRS.
Value-add play: The duo plans to spend $220 million to redevelop the asset, and convert 500,000 SF of storage facilities into office and retail space. Investor materials showed a planned disposition of the completed asset after four years for $1.8 billion.
Financing: Blackstone Mortgage Trust provided a two-year, $650 million loan (includes a 12-month extension) to finance the original acquisition and the first phase of redevelopment.