Tribeca Associates, Meadow Partners and PGIM Real Estate sign 99-year ground lease valued at $375M for the Textile Building at 295 Fifth Avenue

Tribeca Associates, Meadow Partners and PGIM Real Estate inked a 99-year net lease with Manhattan Properties I valued at $375 million for the office building 295 Fifth Avenue in Nomad. The deal closed on October 21, 2019, and was recorded on October 25, 2019. The 16-story building is 614,040 square feet, according to city records. The ground lease tenants signed the lease through the entity 295 Fifth Ave Development Owner LLC, while the landlord entity is Louis Lombardi, Jr.’s Manhattan Properties I doing business as Manhattan Properties Company. Manhattan Properties purchased the building in January 1970.
The average lease price per square foot is $611. The $375 million figure is the value the city published, and is the figure used to calculate the tax on the transaction.
The estimated cap rate is 3.6%, based on that figure.
Elliott Ingerman, Tribeca principal, signed the lease on behalf of the partnership that net leased the building. CBRE’s Darcy Stacom and Bill Shanhan arranged the lease transaction, according to The Real Deal, which reported the building has 550,000 square feet. The city’s Department of City planning estimates the building has 614,040 square feet.

Over the past five years, there have been 36 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 36 renovation/alteration projects (A2) applied for with a total estimated value of $6,787,840.
Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link
A recent story on the property. link.