NEW YORK CITY—EmblemHealth has sold its office property at 441 Ninth Ave. to a partnership of Kevin Hoo's Cove Property Group and the Baupost Group. The partnership paid $330 million for the 423,000-square-foot property, which it plans to expand and redevelop.
Real Estate Alert first reported this past August that 441 Ninth was under contract to the Cove/Baupost partnership. The health insurer currently occupies the eight-story property in its entirety, but is expected to vacate in 2017. A vertical expansion that will add 150,000 square feet is in the works for 441 Ninth, which is located near Related Oxford's Hudson Yards mega-project and Brookfield's Manhattan West development.
A Venable team consisting of Peter Koffler, Sue Golden, Steven Weinberger, Sharon Connelly and Jared Wachtler represented EmblemHealth as legal counsel in the sale; CBRE brokered the deal. Commercial Real Estate Direct reported this week that Deutsche Bank provided the buyers with $220 million of floating-rate acquisition debt. A Cole Schotz team including members Leo V. Leyva, Jordan J. Metzger, Christopher J. Caslin, Gerald H. Gline, Jordan A. Fisch, Rab N. Nalavala, Jan Lewis and Joseph Barbiere; special counsel Robyn A. Pellegrino; and associates Patrick Quinn, Elizabeth C. Navatto, Matthew S. Schneid, Joseph Armenti; and paralegal Marilyn Bernard advised Cove on the financing as well as the acquisition.
EmblemHealth's predecessor, Group Health, bought the property in 1994 for $30.7 million. 441 Ninth was built in the 1950s as a warehouse and was redeveloped into office space after Group Health acquired it.
The sale represents the second high-profile acquisition this year by Cove, a new firm launched by managing partner Yoo along with partners Amit Patel and Thomas Farrell. In March, Cove and Bentall Kennedy teamed up to buy 2 Rector St., a Lower Manhattan office property, for $225 million from Kushner Cos. and CIM Group.
Real Estate Alert first reported this past August that 441 Ninth was under contract to the Cove/Baupost partnership. The health insurer currently occupies the eight-story property in its entirety, but is expected to vacate in 2017. A vertical expansion that will add 150,000 square feet is in the works for 441 Ninth, which is located near Related Oxford's Hudson Yards mega-project and Brookfield's Manhattan West development.
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EmblemHealth's predecessor, Group Health, bought the property in 1994 for $30.7 million. 441 Ninth was built in the 1950s as a warehouse and was redeveloped into office space after Group Health acquired it.
The sale represents the second high-profile acquisition this year by Cove, a new firm launched by managing partner Yoo along with partners Amit Patel and Thomas Farrell. In March, Cove and Bentall Kennedy teamed up to buy 2 Rector St., a Lower Manhattan office property, for $225 million from Kushner Cos. and CIM Group.
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