Columbia Property Trust Completes Acquisition of Normandy Real Estate Management
Business Wire | January 27, 2020
Columbia Property Trust, Inc. (NYSE: CXP) today announced that it has closed on its previously announced acquisition of Normandy Real Estate Management, LLC, a developer, operator and investment manager of office and mixed-use assets in New York, Boston, and Washington, D.C. Columbia acquired the operating platform and real property interests of Normandy for aggregate cash and stock consideration of approximately $100 million, exclusive of transaction and closing costs. This consideration consisted of $13.5 million in cash and approximately $86.5 million in convertible preferred Related to the acquisition of Normandy, Columbia has reached an agreement-in-principle to commit a $53 million equity investment in the Terminal Warehouse joint venture. Upon completion of this investment, which is subject to continuing negotiations and is anticipated to close within the next 30 days, Columbia would become co-general partner alongside L&L Holding Company, LLC and Normandy Fund IV. The venture ― which also includes Allianz Real Estate; an institutional investor advised by J.P. Morgan Asset Management; two pension funds managed by LaSalle Investment Management; and a sovereign wealth fund managed by Stepstone ― intends to transform the 125-year old industrial warehouse, located on Eleventh Avenue in New York’s West Chelsea neighborhood, into a 1.2 million-square-foot, Class-A office and retail destination.