NEW YORK CITY-Taconic Investment Partners, Clarion Partners and TIAA-CREF have recapitalized 401 W.14th St., home to the Apple store in Manhattan’s Meatpacking District. Clarion sold its 42% minority interest to TIAA-CREF; Taconic retained its 58% interest in the property and will continue to manage and lease the asset. The deal values the approximately 60,000-square-foot retail and office building at $168 million.
“Taconic, Clarion and TIAA-CREF worked extremely hard together to reach a mutually beneficial outcome for all parties involved,” says Paul Pariser, Taconic’s Co-CEO. “We could not have been more fortunate to have Clarion as a partner as we embarked upon this complex and spec development project in 2005. We are delighted to now have TIAA-CREF as our venture partner in the next phases of this investment.”
An Eastdil Secured team led by Doug Harmon, Adam Spies and Kevin Donner represented Taconic and Clarion Partners. Taconic did not respond to a request for comment at press time. Watch for a possible update to this story this afternoon.
Taconic and Clarion acquired the property—which sits on the corner of 14th street and 9th avenue, in December 2005 and assembled a design team, including Cook + Fox Architects, to reposition the property. Upgrades to the property included replacing all building systems, constructing a new lobby and building core with two elevators, and redesigning and replacing all windows and retail storefronts. Apple Inc. has had a prominent retail location at the building since 2007, occupying 45,000 square feet, and other tenants at the 100% occupied property include clothing retailers Moschino and Hugo Boss.
“The Meatpacking District has become a magnet for tourists, residents, shoppers and office workers,” says Rick Schaupp, a director at Clarion. “We are proud that, together with our partner, we had the foresight to creatively redevelop and add value to an outstanding property in this strategic location.”
“The building’s location in the heart of New York City’s Meatpacking District and its tenant roster of companies such as Apple attracted us to this opportunity,” said TIAA-CREF Managing Director Gerald Casimir. “This transaction is part of TIAA-CREF’s strategy to invest in marquee properties that have the potential for long-term growth.”