Cannon Hill Capital Partners recapitalized a Flatiron District office building and added a couple of equity partners in the process.
Cannon Hill recapitalized 888 Broadway for an amount above $200 million, the Commercial Observer reported. A Newmark team including Adam Spies and Adam Doneger arranged the recapitalization.
As part of the deal, Williams Equities and Eyal Ofer’s Global Holdings are joining the property as equity partners. Williams is contributing its fee title at 38 East 19th Street, an annex attached to the property.
Colliers is also going to be the leasing agent for the 220,000-square-foot office property.
Netflix is the most significant tenant at 888 Broadway, leasing 100,000 square feet in 2019, when the building was owned by Normandy Real Estate Partners. In the intervening years, Normandy was acquired by Columbia Property Trust and Cannon Hill acquired the Normandy Investment Management business in 2022.
Other tenants include ABC Carpet & Home, ABC Cocina, ABC Kitchen and investment firms. The property, which was recently renovated to add a second lobby entrance and a roof terrace, is 90 percent occupied.
In the fall, PIMCO’s Columbia Property Trust and Cannon Hill sold a distressed office building at 799 Broadway in Greenwich Village to Savanna for $255 million.
This year, Williams Equities picked up a 300,000-square-foot boutique office building at 470 Park Avenue for $147.5 million, a 40 percent discount from the property’s last sale price.
Recently, Ofer’s Global Holdings and BDT & MSD Partners extended a $335 million construction loan to Legion Investment Group and Gindi Capital for their Gramercy Park project.
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