Columbia Property Trust sells Chelsea office to Meadow Partners

218 West 18th Street and Nelson Mills from Columbia Property Trust (Google Maps, Columbia Property)

PIMCO is shrinking Columbia Property Trust’s portfolio as it prepares to close its $ 4 billion purchase from the owner of Manhattan.

Columbia sold the Chelsea office building that serves as Red Bull’s headquarters at 218 West 18th Street to Meadow Partners for around $ 170 million, people familiar with the sale said. The real deal.

Meadow Partners purchases the property through a fund it manages with the California Public Employees Retirement System.

The fund is set up to buy long-term stabilized properties that are not as immediately affected by the current uncertainty in the city’s office market, said Tim Yantz of Meadow Partners.

“It’s almost fully rented and can get you through the next cycle,” he said.

The deal was struck on Friday as PIMCO prepares to complete its takeover of Columbia and its 6 million square foot office property portfolio this week.

Representatives for PIMCO and Columbia could not immediately be reached for comment.

The 12-story building at 218 West 18th Street covers some 166,000 square feet and is leased with an average term spanning the next five years. In addition to Red Bull, tenants in the building include the SAE Institute of Technology and film production company Deluxe Creative Services.

Columbia bought the building in 2017 for $ 155 million at the same time it acquired a neighboring building at 249 West 17th Street, where Twitter in 2018 renewed its lease until 2030.

A Cushman & Wakefield team of Adam Spies, Adam Doneger and Rachel Humphrey, who advised PIMCO on its merger with Columbia, negotiated the sale to Meadow Partners. The brokers declined to comment.

In a transaction announced Monday, Meadow agreed to pay $ 117 million to purchase the 18-story office building at 110 East 42nd Street across from Grand Central Terminal from SL Green Realty.

PIMCO’s purchase of Columbia Property is one of the largest M&A transactions for a Manhattan office REIT in recent memory. The California-based investment manager announced in September that it had reached a deal to buy Columbia for $ 2.2 billion, which values ​​the company at $ 3.9 billion with debt.

In addition to its portfolio of office buildings, Columbia also has a pipeline of development projects that includes the Terminal Warehouse in West Chelsea. Columbia and its partner on the project, L&L Holding Company, landed a $ 1.3 billion loan in July to redevelop the 1.3 million square foot property.

Chris B. Hall