Normandy Trades Repositioned NYC Office Tower
- Sep 15, 2016
New York—Normandy Real Estate Partners has sold the Manhattan office tower at 125 W. 25th St. for $150 million, handing the keys to AFIAA, a Swiss pension fund. Three appears to be a magic number for Normandy; the company sold 125 W. 25th for nearly three times the amount it paid to purchase the 140,000-square-foot property—approximately $54.6 million—out of foreclosure three years ago.
SBL Enterprises brokered the transaction with AFIAA.
The property at 125 W. 25th recently emerged from a $20 million makeover. Normandy kicked off a redevelopment program soon after acquiring the Midtown South building. The real estate operator and fund manager shuttered the doors of the 11-story property and with the assistance of architectural firm Mancini Duffy, transformed the Silicon Alley building into a haven for the TAMI set, offering large floor plates with open floor plans, a rooftop office penthouse, terraces and amenity space—and an efficiency level that’s eight percent higher than that of similar buildings in the submarket.
The project was good enough to secure financing. Acting on behalf of Normandy, commercial real estate services firm JLL obtained a $72 million from Natixis in February 2015.
The building landed a big fish late last year when cycling startup Peloton Interactive Inc. leased more than 40,000 square feet across the top four floors—including the penthouse—for its headquarters. JLL is handling leasing at the office property.
Rendering courtesy of Mancini Duffy