NEW YORK CITY-Co-developers Taconic Investment Partners and Square Mile Capital Management closed on the sale of 15 Little West 12, a five-story, 80,000-square-foot office/retail development in the Meatpacking District, for approximately $70 million to Epic LLC, GlobeSt.com has learned. The London and New York-based real estate investment company, headed by Steven and Michael Elghanayan, owns and manages approximately two million square feet of residential, commercial, office and retail space worldwide.
Colleen Wenke, VP of Taconic Investment Partners, tells GlobeSt.com that the building went to market in the beginning of January and the developers were “flooded with potential purchasers” before closing at the end of June. “From private money to public money to family to International, we had a broad spectrum of potential purchasers who were looking at the asset,” she says, calling 15 Little West 12 a ‘sweet spot’ for multiple different types of investors. “In light of this full potential of purchasers, we extended the marketing period.”
The building–spanning Little West 12th and West 13th Streets–is located in the Meatpacking District’s emerging commercial area between Ninth Avenue and Washington Street. With the site now 80% leased, Wenke says 15 Little West 12 “further solidifies the neighborhood as a major player” in the Midtown South office market. “It is a sought after destination for office and retail tenants,” she says, noting the building’s proximity to The High Line and The Standard Hotel, as well as many luxury retailers and restaurants. “It has very high barriers to entry, and it was attractive to multiple parties.”
Current tenants here include Cleveland-based Arhaus Furniture, who leased 32,000 square feet in the cellar, ground and second floors, as well as Palantir Technologies, who signed a lease for the full fifth-floor space in August 2010 and subsequently expanded to take the full fourth floor.
At the present time, one full floor and a 2,000-square-foot, ground-floor retail space along West 13th Street are available for lease, which Wenke says would be ideal for creative firms or new media companies to set up shop. “That is now the strategy and the vision of the new owners, but those seem to be the type of tenants who were attracted to this office space,” she says.
Designed to fit in with the neighborhood’s industrial and commercial past, 15 Little West 12 was incepted by the late Robert Isabell, who envisioned that the building would become ‘the center’ of the Meatpacking District. Following his death, Taconic Investment Partners and Square Mile Capital Management launched marketing and leasing for the site. The team of Yoron Cohen, Jason Gold and Glen Tolchin of Jones Lang LaSalle represented the sellers in the transaction.
“The types of amenities and the neighborhood feeling that you could provide to a potential tenant is definitely an asset to our leasing endeavors,” Wenke says, though she could not comment on asking rents. “The ability to have open space very nearby is definitely attractive.”