Normandy Real Estate Partners and Invesco Real Estate have landed a $200 million loan to refinance their office property at 888 Broadway, Commercial Observer can first report.
TPG Real Estate Finance Trust provided the five-year, floating-rate debt in a transaction negotiated by Newmark Knight Frank’s Dustin Stolly, Jordan Roeschlaub, Nick Scribani, Chris Kramer, Dylan Kane and John Gallagher.
The 10-story, 221,312-square-foot property — between East 18th and East 19th Streets — comprises two interconnected office buildings: 888 Broadway and 38 East 19th Street.
Normandy and Invesco acquired the upper floors of the former ABC Carpet & Home headquarters at 888 Broadway along with the long-term leasehold of 38 East 19th Street in 2017 for $130 million, converting the space to a modern office condominium.
ABC Carpet still operates its store on the ground floor and basement of the property, and has corporate offices on the second floor.
Following the purchase, the joint venture immediately began repositioning the asset as a Class A, trophy office building. The redeveloped and upgraded property features a new lobby with a private entrance on 19th Street, a new penthouse and a roof deck.
Leasing activity at the property has been strong, with recently inked leases with Australian software company Atlassian (which took 34,000 square feet for 10 years on the third floor in August 2018), ABC Carpet & Home and Netflix. The media streaming giant signed a lease for 100,000 square feet to house a 127-person corporate office, Variety first reported.
“Invesco Real Estate is excited to be working with TPG,” Rob Deckey, managing director and acquisitions officer for Invesco Real Estate, told CO. “Given that the Property is now 100 percent leased with Netflix anchoring the project, the joint-venture believes it is an opportune time to refinance. We look forward to continuing to work with Normandy who has been an outstanding partner in redeveloping and leasing this historic asset.”
“Following the comprehensive renovation and addition of the penthouse and roof deck, 888 Broadway will be a prominent, trophy office property that will undoubtedly continue to attract high-profile tenants given the quality of the space and unbeatable location,” Stolly said in prepared remarks.
“The institutional and dynamic pairing of Normandy and Invesco make up for a best-in-class sponsorship profile that is especially equipped to execute this business plan,” Roeschlaub added.
Officials at Invesco weren’t immediately available for comment. TPG officials declined to comment. A spokesperson for Normandy didn’t immediately return a request for comment.