Chelsea Office Building Fetches $205M
Co-developers Vornado Realty Trust and Long Island-based Albanese Organization have sold 512 West 22nd Street for $205 million to New York-based private developer MFK Realty LLC. JPMorgan Chase and Citi Real Estate Funding assumed existing debt on the property, the $130 million in consolidated financing included a newly originated roughly $7 million gap mortgage. The block-through site that has an alternate address of 511-519 West 21st Street was acquired by the joint venture in 2011 for $54.5 million, the transaction financed by a $35.1 million HSBC loan. The former 5-story, 82,650-square-foot parking facility underwent a conversion to office use, the project also including a 6-story vertical expansion creating a total of 173,000 square feet of commercial space. WarnerMedia leased 20,000 square feet in 2019 to house its Innovation Lab, followed a few months later by a 41,300-square-foot lease with loyalty rewards platform Next Jump Media. According to the press release by Vornado Realty Trust, which had a 55% stake in the property, “after repayment of the $123 million mortgage loan encumbering the property and transaction expenses, Vornado’s share of the net proceeds is approximately $38 million;” and the REIT “expects to recognize an approximate $11 million financial statement gain from this transaction in the third quarter.”