CalSTRS Invests in the $900M Terminal Stores
The California State Teachers’ Retirement System is reportedly joining L&L Holding Co. in buying a stake that's separate from the Normandy Real Estate Partners' interest in the former brick warehouse.
NEW YORK CITY—The California State Teachers’ Retirement System is expected to provide $100 million of equity in a joint venture with L&L Holding Company, as part of the approximately $900 million purchase of Terminal Stores, according to Bloomberg. The state pension fund manages a $223.8 billion portfolio.
The pension fund has now reportedly joined L&L in investing in a stake, alongside the Normandy Real Estate Partners’ ownership interest, in the acquisition of the former warehouse from Waterfront New York and GreenOak Real Estate Advisors. The 1.3 million square-foot complex is located at 271 Eleventh Ave. in the Chelsea neighborhood, on the Far West Side of Manhattan. Bloomberg notes that a person familiar with the CalSTRS investment says Normandy is not part of the CalSTRS and L&L joint venture. The news outlet states that JP Morgan Chase is representing the pension fund.
In 2014, when GreenOak acquired a 49% interest in the Terminal Stores property, it was valued at $300 million.
An L&L representative responded to GlobeSt.com that the real estate firm was not providing comment on the investment. CalSTRS also stated that they were not commenting at all on the investment.
The massive brick former warehouse extends from W. 27th to W. 28th streets, and from Eleventh Avenue to the West Side Highway. The investors plan to convert more than 500,000 square feet into office and retail space to lease.
The Real Deal recently reported that 1stdibs.com, an online interior design site, signed a 41,000 square-foot, four-year sublease at Terminal Stores with Flextronics, an electronic manufacturing company. Other building tenants include Uber Technologies and L’Oreal.