Recently Built Greenwich Village Office Building Hits the Market

Columbia Property Trust has reportedly introduced the sale offering of the 12-story, 178,000-square-foot office building that was delivered in 2022. Currently about 71% leased, larger tenants include Wellington Management, which leased 70,711 square feet in April 2022. The REIT that is owned by asset manager PIMCO is “eyeing a price tag of $250 million.” In contrast to some of the more recently reported investment sales of older office properties that traded at steep discounts, the sale of 799 Broadway offers recent construction featuring “the high ceilings, amenities and abundant light and air that draw tenants.” The site located at East 11th Street in Greenwich Village previously hosted the 6-story, 97,000-square-foot St. Denis Hotel; and had been purchased by Normandy Real Estate and Ares Management in 2016 for roughly $100.1 million. In 2018, Columbia Property Trust (CPT) finalized a joint venture with Normandy to develop the estimated $300 million office building project, replacing Ares Management which opted to sell its roughly 50% stake to Columbia for $70 million according to reports at the time. In March 2020 CPT completed the acquisition of the operating platform and real property interests of Normandy Real Estate Management, taking full control of the site, which valued the property at $145.5 million according to city records. Although the article by The Real Deal indicates there is $270 million in debt on the property, which would indicate a possible short sale, city records lists a total debt of $217.76 million — $173,420,329 provided by Blackstone Real Estate Debt Strategies on June 8, 2022 that consolidated a newly originated $63,420,329 gap mortgage with an existing $97 million mortgage and $13 million building loan secured in 2018; and about one month later, Blackstone provided a newly originated $17,637,552 million building loan and $26,702,119 project loan. Currently about 71% leased, Blackstone is reportedly “offering a pre-arranged financing package to potential bidders that could help smooth the process along.”

Source:    https://therealdeal.com/new-york/2024/08/06/columbia-property-trust-eyes-799-broadway-short-sale/