Taconic Investment Partners, Clarion Partners and TIAA-CREF announced that they have recapitalized 401 West 14th Street, home to the Apple store in the Meatpacking District.
Clarion sold its 42% minority interest to TIAA-CREF; Taconic retained its 58% interest in the property and will continue to manage and lease the asset.
The deal values the 60,000 s/f retail and office building at $168 million.
“Taconic, Clarion and TIAA-CREF worked extremely hard together to reach a mutually beneficial outcome for all parties involved,” stated Paul Pariser, Taconic’s co-chief executive officer. “We could not have been more fortunate to have Clarion as a partner as we embarked upon this complex and spec development project in 2005. We are delighted to now have TIAA-CREF as our venture partner in the next phases of this investment.”
The transaction closed on January 30 and an Eastdil Secured team led by Doug Harmon, Adam Spies and Kevin Donner represented Taconic and Clarion Partners.
Taconic and Clarion acquired 401 West 14th Street, on the corner of 14th Street and 9th Avenue, in December 2005 and assembled a design team, including Cook + Fox Architects, to reposition the property.
Upgrades included replacing all building systems, constructing a new lobby and building core with two elevators, and redesigning and replacing all windows and retail storefronts. Apple Inc. has had a prominent retail location at the building since 2007, occupying 45,000 s/f and other tenants at the 100% occupied property include clothing retailers Moschino and Hugo Boss.
“The Meatpacking District has become a magnet for tourists, residents, shoppers and office workers,” said Rick Schaupp, a director at Clarion Partners.
“We are proud that, together with our partner, we had the foresight to creatively redevelop and add value to an outstanding property in this strategic location.”
TIAA-CREF managing director Gerald Casimir called the deal “part of TIAA-CREF’s strategy to invest in marquee properties that have the potential for long-term growth.”
