Jamestown Properties has purchased the Milk Studios building at 450 West 15th Street from Stellar Management for more than $284 million, city records show.
The 325,000-square-foot, eight-story office building, home to photography studio Milk Studios and an eclectic mix of tech, fashion and creative tenants, borders the High Line.
It’s a symbolic and strategic move for Jamestown, which owns the Chelsea Market across the street and looks to expand its footprint in the heavily-traveled Meatpacking District.
Ironically, city records show that Stellar provided a $150 million loan to Jamestown, which suggests that the move was perhaps more than a kind gesture, but also a play to complete the deal before the end of 2012, as imminent capital gains taxes loomed (the city record was filed on Friday, but shows the deed was finalized December 21).
Manhattan Market Report
An unprecedented sevenfold increase in retail property sales fueled the Manhattan commercial real estate sales market’s epic comeback in the fourth quarter – its strongest performance since 2007, according to preliminary data from Eastern Consolidated.
The hallmark quarter, with nearly $13 billion in sales volume – the strongest since record-breaking performances in 2007 (peaking at $19 billion in Q2 of 2007) – was triggered by fears of impending capital gains taxes, which had owners scrambling to unload properties before year’s end.
“This was definitely fiscal-driven growth,” said Barbara Byrne Denham, Eastern Consolidated’s chief economist. “Sellers wanted to cash out and buyers knew it, so they were eager to come to the table as well.”
Giorgio Armani is getting a view over the High Line. The Italian fashion company has inked a lease for a 60,000-square-foot space at 450 West 15th Street in the Meatpacking District, sources familiar with the transaction confirmed to The Commercial Observer, and is due to move its headquarters and showroom to the space in October 2013.
The fashion house Armani is said to be poking around the market for space.
The company bases its Manhattan offices at 111 Eighth Avenue, an office building owned and largely occupied by Google, but it won’t be able to stay much longer. Google has refused to renew tenants’s leases in the nearly three million-square-foot property in order to clear a path there for its own growth.
The advertising firm Deutsch Inc. is renewing its lease at 111 Eighth Avenue, dealing yet another blow to Google’s plans to expand in the building it forked over more than $2 billion to acquire in early 2011.
Google is searching the market for around 80,000 square feet and the Internet giant is looking closely at 450 West 15th Street and 770 Broadway sources have revealed to The Commercial Observer.
As The CO previously reported, Google has had difficulty buying tenants from their leases at 111 Eighth Avenue, the large Chelsea office building that the company bought at the beginning of 2011 for a whopping $2 billion.
Lease of the Week
inVentiv Health, a multifaceted provider of services in the health care industry, has signed a 75,000-square-foot renewal and expansion for its subsidiary Chandler Chicco Agency at 450 West 15th Street.
The company, which handles public relations and advertising for health care companies, renewed its lease for the 300,000-square-foot building’s entire seventh floor and a portion of six. The firm will expand onto part of the building’s fourth floor, taking a little over 21,000 square feet.