Report: Tishman Speyer to Purchase NYC Building for $108M
Tishman Speyer hasn’t bought an asset in Manhattan since 2019 but is expected to soon acquire 148 Lafayette St., a 13-story, 150,000-square-foot office building, in the SoHo neighborhood for approximately $108 million.
The Manhattan-based global real estate firm is expected to close the deal with building owner EPIC within two weeks, according to the Commercial Observer, the first outlet to report the asset is officially under contract. The price may be about 10 percent lower than expected. Earlier reports from the CO and The Real Deal in April pegged the potential sale at approximately $120 million.
EPIC, a global real estate developer, owner and manager with properties in the U.S., U.K. and Europe, acquired the property in May 2012 for $131 million, or $907 per square foot, from Property Group Partners. PGP purchased the asset in February 2007 for $59 million, or $406 per square foot, from Ares Management.
The owner secured an approximately $77 million 10-year loan from Blackstone Group that was originated by AIG in December 2023, according to CommercialEdge.
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Located between Grand and Howard streets, 148 Lafayette St. was built in 1913 and completely renovated in 2008. The property also has 8,156 square feet of retail space. Office tenants include General Catalyst, a venture capital firm that signed a long-term lease for 42,535 square feet in March, according to the CO. The firm is taking space on the 10th through 12th floors and the penthouse, which has a private balcony.
WeWork has leased 24,630 square feet since 2019 and international beauty brand Charlotte Tilbury has a 10-year lease through February 2028, CommercialEdge data shows. Other tenants include Realty Royal, LMA Productions, Events & Staffing Primeur Zapeta, Dugud Labs and 3 Cheers Team Events.
Newmark team work
The sale between EPIC and Tishman Speyer was arranged by Adam Spies, Adam Doneger, Josh King, Doug Harmon, Marcella Fasulo and Avery Silverstein of Newmark, according to the CO. The same source noted Jordan Roeschlaub, co-president of Debt & Structured Finance at Newmark, and Newmark Vice Chairman Chris Kramer are seeking financing for the transaction with a loan expected to be about 50 to 60 percent loan-to-cost.
Tishman Speyer activity
While Tishman Speyer hasn’t recently been purchasing Manhattan real estate, it has been in the news for several large refinancing deals at some of its high-profile New York City office properties. In November, Tishman Speyer refinanced The Spiral, a 2.8 million-square-foot tower at 66 Hudson Boulevard in Hudson Yards for approximately $2.9 billion.
The firm also refinanced the iconic Rockefeller Center in Midtown Manhattan in October for $3.5 billion. The transaction, done in conjunction with joint venture partner Henry Crown & Co., was the largest CMBS loan deal for a single office asset to date. The proceeds repaid the existing 20-year, $1.7 billion CMBS debt, along with mezzanine financing, that was scheduled to mature this month.
The private real estate company develops, invests and manages top-tier real estate across top markets in the U.S., Europe, Asia and South America. In addition to the office sector, Tishman Speyer’s portfolio includes luxury and affordable residential communities, retail properties, industrial facilities and mixed-use campuses. The firm also creates life science centers through the Breakthrough Properties joint venture and has a proptech platform, TS Ventures.
Last month, Tishman Speyer signed a 132,000-square-foot lease with Spin Master at The Collective, a 204,724-square-foot, five-building creative office campus in the West Lost Angeles neighborhood of Playa Vista. It was the largest lease transaction in the area in the past two years.
In March, the firm signed a 150,000-square-foot, 35-year lease with Brooklyn Prospect Charter School at The Wheeler, an 844,378-square-foot office tower in Brooklyn, N.Y. Also that month, BP agreed to a 240,000-square-foot lease extension at Tishman Speyer’s CME Center in Chicago’s West Loop submarket. The oil and gas multinational company will remain at 10-30 S. Wacker Drive, a 2.3 million-square-foot office tower, through at least 2032.
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