L&L, Columbia Property Trust, Closes $ 1.2 Billion Warehouse Facility Loan

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L&L Holding Co. and Columbia Property Trust secured $ 1.25 billion in construction funding for the terminal warehouse renovation, which resulted in the restoration and conversion of 1.2 million square feet of office space, retail and warehouse space into a workplace and distribution network destination in the area West Chelsea Manhattan.

Vehicles operated by Blackstone Real Estate’s Debt Strategies platform resulted in a $ 974M core loan and a core mezzanine loan with Goldman Sachs and KKR, while funds managed by Oaktree Capital Management, LP spearheaded funding for a junior mezzanine of $ 274 million in partnership with Paramount Group. With the loan package – the largest construction funding to date in New York City this year, according to the companies – is now secured, L&L and Columbia are poised to begin major construction.

Working with architecture firm COOKFOX, L&L and Columbia are converting 550,000 square feet of Terminal Warehouse warehouse space into offices, as well as redefining ground floor retail space and common areas. As part of a project plan approved by the New York City Landmarks Conservation Commission in January 2020, floor space will be removed to make way for a new courtyard, a series of double-height interior spaces throughout the west end of the building, and six new office floors with floor glass. up to the ceiling overlooking the Hudson River. The project is expected to be completed in 2023.

The Terminal Warehouse, built in 1891, occupies an entire Manhattan block of 11th up to 12th Prospect and 27th up to 28th Street. As the first major New York City property with direct access to the river, streets and railways, the building originally served as a staging post for goods to and from the city. The hotel’s most distinctive feature is the two-track tunnel that runs through the center of the facility and originally offered direct connections from the Hudson River docks to freight lines operating at street level at 11 Street.th Avenue. This tunnel also housed the famous Tunnel nightclub in the 1980s and 1990s.

The 670-foot railway tunnel will be rebuilt and eventually filled with shops, restaurants and other amenities. L&L and Columbia also plan to restore the monumental arched entrances located at 11th and 12th Prospectuses.

CBRE organized a financing package on behalf of the joint venture. Peter Olsen and Seth Fersko of Paul Hastings represented the borrowers. The terms of the loan were not disclosed.

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