Columbia Making Major Moves in NYC

ATLANTA—Columbia Property Trust just inked a strategic alliance that helps the company tap into value-added opportunities in New York City. Columbia is aligning with L&L Holding Company, which owns and manages a 6 million-square-foot portfolio of class A commercial office properties in and around Manhattan.

"Our strategy includes teaming up with local sharpshooters in key markets that complement our proven leasing and regional management teams to successfully capitalize on value-add opportunities such as 315 Park Avenue South," says Nelson Mills, president and CEO of Columbia. As part of the alliance, L&L will offer leasing and property management services for Columbia's newly-acquired office property at 315 Park Avenue South.

"L&L is a proven operator with an impressive track record in the New York market, and they will work with us to further enhance the property's reputation as one of the market's premier office destinations due to its desirable location and unique blend of historic architecture and modern infrastructure,” explains Mills. “We are actively exploring future joint investment opportunities with L&L as we continue to enhance our portfolio and expand Columbia's presence in the New York market."

Columbia acquired 315 Park Avenue South, a recently-renovated, historic class A office building spanning 341,330 leasable square feet in Manhattan's Gramercy Park submarket, in an off-market transaction earlier this month. L&L will support Columbia's efforts to maximize the property's value. Currently, there is significant near-term lease roll at below market rents and a prime location in Midtown South.

"We are pleased to be working with Columbia Property Trust on the timely opportunity that 315 Park Avenue South presents," says Robert T. Lapidus, president of L&L. "The Columbia team has proven their ability to identify and execute favorable investment transactions in very attractive markets. We look forward to complementing their efforts to position 315 Park Avenue South as a top competitor in Midtown South and to the possibility of future investments together."

On the Atlanta front, Columbia sold a five-building class A office campus there for $290 million last October. The campus offers 1 million square feet of office space.