NEW YORK CITY—In what's sure to be a new watermark for theBronx, the historic BankNote Building has been sold for $114million. ABN Associates LLC—comprised ofaffiliates of Taconic Investment Partners andDenham Wolf Real Estate Services—sold the asset toa joint venture between Madison Marquette andPerella Weinberg Partners Asset Based ValueStrategy.

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Located at 1201 Lafayette Ave. in the Hunts Point section of theBronx, the 400,000-square-foot property was formerly the home ofthe American BankNote Co., which printed US and foreign currencyand securities at the site from 1911 until the 1980s. It waspurchased by Taconic in 2007 and was 70% vacant at the time.

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The landmarked, class A building is now 93% leased, havingundergone an extensive, $58-million capital and tenant improvementplan. Recently, Taconic secured a 200,000-square-foot office leasefor the Human Resources Administration and completed the build-outof the new space in just nine months.

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“We're excited to have achieved our goal of creating a greatoffice complex that acts as a hub of energy, creativity and jobcreation for the neighborhood and surrounding community,” saysCharles Bendit, co-chief executive officer ofTaconic. “The BankNote Building was a challenging projectgiven the economic landscape of the past seven years and we'reincredibly proud of its success.”

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The new ownership is expected to retain the existing on-sitemanagement team to handle the day-to-day operations of thebuilding. Other non-profit and business tenants at the buildinginclude BOCNET, Iridescent-ONR, the Hunts Point Alliance forChildren, Urban Health Plan, JVL Charter School, Fedcap and theoffice of Rep. José Serrano.

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"We are very excited that Madison Marquette's partnership withPerella Weinberg Partners continues to grow with the acquisition ofthe Bank Note Building,” says Amer Hammour,Chairman of Madison Marquette. “This deal extends our jointcommitment to building value in emerging infill urban markets withsubstantial promise for the future."

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He adds that the partnership is "excited at the opportunity ofparticipating in and contributing to the rapidly emerging revivalof the Bronx, with its extraordinary proximity to New York's urbancore. The BankNote is ideally suited to join Madison Marquette'sportfolio of platinum-level retail and mixed-use properties inmajor coastal gateway markets."

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Adds David Schiff, partner at Perella WeinbergPartners and portfolio manager at Asset Based Value strategy, “Weare excited to be acquiring the BankNote Building, an historicallysignificant and renowned property. This acquisition is in linewith our strategy of identifying and purchasing first-rateproperties in high-density urban areas with topnotch tenants, andwe look forward to being its next stewards in a community thatcontinues to experience significant development.”

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Rayna Katz

Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.