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What is Trinity Real Estate selling?

Stake in 11-building portfolio could fetch $3B, sources say

JasonPizer1Hudson
From left: Jason Pizer, 1 Hudson Square, 225 Varick (top right) and 205 Hudson

In 1705, England’s Queen Anne donated 215 acres of prime Manhattan farmland to Trinity Church. In the years since, Trinity sold off a large chunk of those holdings, but still owns a sizable portfolio of prime commercial real estate concentrated in Hudson Square. And it’s now in play.

Earlier this month, Trinity took bids for a 5 million-square-foot, 11-building portfolio in Hudson Square. Suitors include some of the city’s biggest real estate players such as SL Green Realty and Vornado Realty Trust. Sources familiar with the offering told The Real Deal that Trinity offered a 49 percent stake on 75-year leaseholds for the properties, and said the stake could go for about $3 billion.

While the bidders await news of the prize, TRD took a look at exactly what’s up for grabs.

CBRE’s Darcy Stacom is handling the marketing, after taking over from colleague Michael Laginestra. Along with SL Green and Vornado, Norges Bank, Brookfield Property Partners and Ivanhoe Cambridge are reportedly in the running.

In March, Trinity offered a smaller portfolio of four buildings that was expected to fetch $1.25 billion. Here’s how the 11 buildings now up for grabs stack up:

100 Avenue of the Americas

The 17-story office building measures 381,461 square feet and is 98 percent occupied, anchored by Two Sigma Investments, which occupies 114,815 square feet. NYC Elite Gymnastics occupies the retail space.

155 Avenue of the Americas

Rising 15 stories, the 225,692-square-foot building is 88 percent occupied. Salesforce.com occupies 30,960 square feet while Mototainment LLC is the retail tenant.

1 Hudson Square (75 Varick Street)

Spanning nearly 1.2 million square feet, the 17-story building is 85 percent occupied. Anchor tenant Horizon Media occupies 158,315 square feet and Metro Bicyles and SoHo Made Soups occupy the retail.

10 Hudson Square  (160-170 Varick Street)

The 12-story, 349,720-square-foot building is 94 percent occupied, with Hudson Square Market occupying its retail space. Kirshenbaum Bond Senecal + Partners occupies 98,000 square feet of office space. The building is also home to WNYC.

200 Hudson Street

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Measuring 386,820 square feet, the 12-story building is 99 percent occupied. Arrojo Studio is the retail tenant, and office tenant Havas North America occupies 225,474 square feet.

205 Hudson Street 

The 12-story building measures 400,996 square feet and is 99 percent occupied, with TriBeca Rooftop as its retail tenant. The City University of New York occupies 94,376 square feet.

345 Hudson Street

Rising 17 stories, the 984,432 square foot building is 99 percent occupied, including retail tenants Chase Bank and Starbucks, as well as office tenant Viacom, which occupies 398,314 square feet.

350 Hudson Street

The nine-story building has 335,066 square feet and is 97 percent occupied. Gregory’s Coffee and Pret a Manger are retail tenants, and office tenant Medidata Solutions occupies 137,535 square feet.

435 Hudson Street

The nine-story building has 291,064 square feet and is 99 percent occupied. EN Japanese Brasserie is its retail tenant and the anchor tenant is @radical.media LLC, which occupies 27,000 square feet.

225 Varick Street

Measuring 376,749 square feet, the 12-story building is 85 percent occupied. Workman Publishing occupies 63,000 square feet of office space and New York Sports Club is a retail tenant.

16 Vestry Street

The seven-story, 60,800-square-foot building is 72 percent occupied. The largest office tenant is Stella Maris with 8,260 square feet.

(Source: TRD research and CoStar Group)

In all, Trinity owns 5.6 million square feet of real estate. It has lease commitments worth $2.2 billion, on existing leases as of Dec. 31, 2014, according to its most recent financial statements. Its net return from real estate operations last year dropped 1 percent to $82.3 million, down from $83.6 million in 2013, due to rising operating expenses and depreciation, according to the statements. Leasing revenue rose to $206.1 million from $195.8 million.

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