Blackstone, Goldman Sachs, KKR Lead $1.25 Billion Loan For Terminal Warehouse

L&L Holding Company and Columbia Property Trust are busy securing a $1.25 billion construction loan for their redevelopment of Terminal Warehouse.

The long-anticipated deal on the 1.2 million Sq Ft. West Chelsea asset is the largest construction loan of 2021, thus far, and is scheduled to close this afternoon.

According to sources, BlackstoneGoldman Sachs, and KKR are leading the financing, with Oaktree Capital Management and Paramount Group in the mezzanine position.

The 1.3 million Sq Ft. asset occupies the entire block bounded by 11th and 12th avenues (the West Side Highway), and West 27th and West 28th streets. 

Originally constructed as a warehouse building in 1891 designed by naval architect and engineer George Mallory Terminal Warehouse is presently undergoing a sweeping transformation and modernization that will restore its infrastructure to its former glory while meeting today’s creative office’s needs retail tenants. 

L&L and Columbia are investing significant capital into repositioning the property, and converting approximately 500,000 Sq Ft. of self-storage space to Class A office use.

Maintaining much of its distinctive original features, the building features ceiling heights ranging from nine to 20 feet and architectural details, such as oversized arch windows and exposed brick walls.

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