CBRE Lends a Hand to Far West Side Asset
- Jul 29, 2015
By Gail Kalinoski, Contributing Editor
An eight-story, 470,000-square-foot auto dealership owned by Ford on Manhattan’s Far West Side has been sold to a partnership headed by The Georgetown Co. for more than $250 million and is expected to become the new headquarters of hedge fund firm Pershing Square Capital Management.
Pershing Square, headed by Bill Ackman, is a co-investor in the property at 787 11th Ave., according to the Commercial Observer, which confirmed the deal had closed with Adam Flatto, president of The Georgetown Co., a privately-held real estate investment and development company.
Various media reports stated the site on what’s known as Dealership Row in Manhattan sold for close to $255 million. The Commercial Observer reported Ford bought the property, located between West 55th and West 56th streets, in 1997 for $73 million.
Darcy Stacom and Bill Shanahan of CBRE marketed the property for Ford. They declined to comment on the deal.
Working on behalf of The Georgetown Co., CBRE Capital Markets Debt & Structured Finance arranged $180 million in financing for the acquisition. The 18-month, non-recourse acquisition and pre-development bridge loan was provided by JP Morgan Investment Management. The loan includes three six-month extension options and gives The Georgetown Co. and its partners time to complete redevelopment plans, according to a CBRE prepared statement. The bridge loan also offers the flexibility to prepay and refinance with a larger construction loan, according to CBRE.
The property, which had housed dealerships and a service center for Jaguar and Land Rover, was vacant at closing. Using the existing building, 787 11th Ave. will be redeveloped into a Class A commercial property with office and retail space, including automotive users, CBRE noted in the prepared statement.
Jason Gaccione, Shawn Rosenthal and Michael Sherman of CBRE’s Midtown Manhattan office and Russell Schildkraut of Ackman-Ziff arranged the financing for the borrower.