Stroock Advises Columbia Property Trust in $514 Million Acquisition of Two Prime New York Office Buildings with Marquee Tenants
Twitter, Red Bull and Room & Board among major brands housed in properties; deal adds to Stroock’s national work on behalf of leading commercial REIT
New York, NY, October 16, 2017 – Stroock represented long-time client Columbia Property Trust (NYSE: CXP) in its acquisition of two nearby office buildings in Manhattan’s Chelsea neighborhood that further expands the national REIT’s New York foothold.
Columbia purchased two fully-leased Class-A office properties – 245-249 West 17th Street, two adjoining office buildings comprising 281,294 square feet of commercial space, along with 218 West 18th Street, a 165,670-square-foot office building. The combined acquisition price was $514 million. Columbia acquired the properties from New York REIT (NYSE: NYRT).
Twitter occupies most of the two-tower building on 17th Street with the remaining space filled by a large showroom for high-end modern furniture seller Room & Board. The 18th Street property includes the New York headquarters of beverage and lifestyle company Red Bull, along with several other office tenants.
The Stroock deal team advising Columbia included Jeff Keitelman, co-chair of the national real estate group and Stroock's co-managing partner, along with Washington-based real estate partner Kim Pagotto and associate Kelly Booker.
The acquisition increases Columbia’s presence in New York to seven Class-A properties with a total of 2.6 million square feet.
“Our acquisition of these prime Midtown South buildings allows us to expand within New York, where we already held the largest concentration in our portfolio, and will further establish Columbia as a significant player in Manhattan’s most dynamic office district,” said Nelson Mills, Columbia’s president and CEO. “We view these acquisitions, along with our recent share repurchases, as an excellent use of the capital raised from our non-core dispositions.”
Stroock has been longstanding legal counsel to Columbia, having advised the REIT on acquisitions, dispositions and leasing transactions in multiple major metropolitan markets nationally. These include the $522 million sale of a 22-building, 12 state portfolio of assets; the $228 million acquisition of a San Francisco office tower; and the $433 million disposition of a multi-state, 11 property office building portfolio, among a number of other significant deals.
“We’re so happy to have represented our client Columbia Property Trust as it adds to its national portfolio with two exceptional New York properties – Chelsea has become a magnet neighborhood for commercial tenants in the past several years and the buildings in this deal are the New York home for several world-class consumer brands,” Mr. Keitelman said.
Stroock’s 85-member national real estate practice, led by Keitelman and Brian Diamond, has advised on structuring and financing transactions that have reshaped the nation’s metropolitan areas. Among recent client matters bearing Stroock’s national fingerprints are 10 Hudson Yards, one of the largest real estate transactions in NYC; the redevelopment of the former Washington Post site, in the center of the nation’s capital; 1285 Avenue of the Americas, one of the largest real estate transactions in the U.S.; South Florida Logistics Center, one of the area’s largest industrial deals in South Florida; and Kips Bay Court, one of the largest NYC multifamily transactions.
Stroock provides strategic transactional, regulatory and litigation advice to advance the business objectives of leading financial institutions, multinational corporations and entrepreneurial businesses in the U.S. and globally. With a rich history dating back 140 years, the firm has offices in New York, Los Angeles, Miami and Washington, DC.