NEW YORK CITY –– CB Richard Ellis’ (CBRE) Capital Markets group secured a $380 million loan in conjunction with the recapitalization of Chelsea Market, an iconic mixed-use property located at 75 Ninth Avenue in New York City on behalf of Jamestown. The property sits on 3.79 acres, encompassing an entire city block bounded by 15th and 16th Streets and 9th and 10th Avenues within the Chelsea submarket of Manhattan.
“Jamestown was extremely satisfied with the debt execution, which was smooth, and the debt was a perfect match for our business plan,” said Shak Presswala, vice president and head of capital markets with Jamestown.
Chelsea Market (pictured below) is a cluster of 15 former Nabisco Facility industrial buildings that were renovated and converted into a dynamic mixed-use office/retail property. The 1.18 milion-plus-square-foot development is contiguous to New York’s High Line Park, and anchored the Chelsea/Meat Packing Districts transformation. The buildings were originally constructed between 1890 and 1932 and were completely renovated between 1994 and 1997 with continuing architectural enhancements and modifications through 2011. At closing, the property was 99 percent occupied by tenants such as Major League Baseball, The Food Network, Time Warner, EMI, Google and Anthropologie.
Jamestown has a 25-year track record of mixed-use redevelopment that includes New York’s Chelsea Market, Chattanooga, Tennessees’s Warehouse Row, Atlanta’s White Provision, and most recently, Ponce City Market, which is hoping to spur a similar renaissance in the Old Fourth Ward neighborhood Atlanta.
“We have specialized to some degree in complex urban projects, and we consider assets like this to be our forte,” said Matt Bronfman, managing director, Jamestown Properties, referring to both the Atlanta project as well as its other redevelopments like Chelsea Market.
CBRE’s Debt and Equity Finance team of Executive Vice President Jeff Ackemann along with Institutional Group Vice Chairman Will Yowell, Executive Vice President Justin Parsonnet, Senior Vice President Jay O’Meara and Senior Analyst Steve O’Brien represented the client and arranged the financing from Landesbank Baden-Wurttemberg, a German-based bank.
— Dan Marcec