Chelsea Office Building In Contract for $205M
The office building located along The High Line in Chelsea has entered into contract for $205 million according to the press release by 55% stakeholder Vornado Realty Trust. Located at 512 West 22nd Street, the 11-story, 173,000-square-foot building was constructed in 2018 by the joint venture of Vornado and the Long Island-based Albanese Organization. The contract vendee was not disclosed by the REIT, but a Commercial Observer press release identified the buyer as MKF Realty. Proceeds from the sale that is expected to close in the 3rd quarter will be used by the JV to repay the remaining $123.6 million in unpaid principal of a $145.7 million loan provided by PNC Bank in July 2019, which refinanced $106.081 million of existing debt and added a newly originated $39.619 million gap mortgage according to city records. The original two parcel development site was purchased by the JV in 2011 for $54.5 million. The project included the total redevelopment and 6-story vertical expansion of the existing 5-story parking facility. The LEED Silver certified building features multiple double and single height terraces, some of which overlook the elevated park. Notable reported lease signings include a 20,000-square-foot space secured by WarnerMedia for its Innovation Lab in September 2019, followed a few months later by Next Jump Media’s lease for 41,300 square feet spanning the top three floors of the building at a report asking rent of $160 per square foot.