L&L Holding Company and Normandy Real Estate Partners are about to get another partner on their massive Terminal Stores deal.
Allianz Real Estate of America is closing in on a deal to take a roughly 30 percent stake in the building, according to sources familiar with the deal. L&L and Normandy had purchased the Chelsea building over the summer for about $900 million, triple its prior valuation.
The move by Allianz would value the 1.2 million-square-foot site at about $733 per square foot — the same as the purchase price — and Allianz would also fund part of the $520 million in equity from JPMorgan, acting as an adviser to the California State Teachers Retirement System.
Real Estate Alert was the first to report the deal.
Terminal Stores was last valued at $300 million in 2014, when GreenOak Real Estate bought a 49 percent stake in the building. Waterfront New York bought the site in 1983 for roughly $12 million.
L&L and Normandy plan to turn the warehouse into a property worth about $1.8 billion in the next four years. Their designs call for creating 100,000 square feet of glass penthouse space atop the building, and they hope to get rents of about $135 per square foot.
The companies also want to create a retail corridor similar to Chelsea Market and convert 500,000 square feet of storage space into office space. COOKFOX will design the project.