For more retail coverage, click GlobeSt.com/RETAIL.
NEW YORK CITY-San Francisco-based MacFarlane Partners has formally acquired a minority 49.5% equity interest in the retail and parking-garage components of Time Warner Center here. The investment is a co-ownership with developers, the Related Cos. and Apollo Real Estate Advisors, which continue to manage the property. The value was previously estimated to be between $425 million and $500 million.
MacFarlane committed to purchase the equity stake in January 2003 and provided a $359-million loan to the developers that partially financed the construction of the retail and garage components. That loan was repaid concurrently with MacFarlane Partners' equity purchase.
"Time Warner Center has proven to be an excellent investment in just a short period," says Chuck Berman, a managing principal with MacFarlane . "Our strategy has always been to invest in properties that help revitalize urban neighborhoods while providing high returns for our clients."
Time Warner Center's retail venue, called the Shops at Columbus Circle, encompasses 338,000 sf of retail stores, restaurants, entertainment uses and grand public spaces on six lower floors of the complex. The parking garage accommodates 504 vehicles and offers 24-hour valet service. MacFarlane equity interest does not include Time Warner Center's other property uses. The company invested in the center as part of its joint venture with CalPERS to invest in urban-infill properties in major metropolitan areas nationwide.
MacFarlane and Related are in the process of building two multifamily projects in Los Angeles and New York City. The currently under-construction Tribeca Green in Lower Manhattan will be located at the southwest corner of North End Avenue and Warren Street, one block east of the Hudson River in Battery Park City. The project is a 24-story high rise that the JV will operate on a 65-year ground lease from the Hugh L. Carey Battery Park City Authority. It will contain 274 luxury apartments, 5,500 sf of ground-floor retail space and a below-grade parking garage. The $110-million project is scheduled for completion later this year. It will have a "green" building design with photovoltaic electrical system, a blackwater-treatment system and other environmentally sensitive and energy-saving features.
MacFarlane has two offices in the New York metropolitan area and both Chuck Berman, managing principal, and Tracey Appelbaum, a principal in the acquisitions/development group, are actively sourcing investments, according to a spokesperson. The company is "pursuing several prospective investments in Manhattan and looking to team with qualified developers on multifamily-residential, retail or residential/commercial mixed-use development projects in New York City," the spokesperson tells GlobeSt.com.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
