TIAA Global JV Picks Up LIC Office, Retail Tower

Located at 47-25 34th St., HUB LIC could have an 80,000-square-foot contiguous block of office space on one floor.

NEW YORK CITY—A joint venture partnership of TIAA Global Asset Management and Metropolitan Realty Associates has acquired a large commercial property in Long Island City for $89 million. Located at 47-25 34th St., HUB LIC, is a four-story, 326,000-square-foot commercial building that is 48% leased to a mix of tenants that includes POLO Ralph Lauren, TEC Systems Eleni’s Bakery, Gracie, and Richelieu. Eastdil’s Doug Harmon, Adam Spies, Adam Doneger and Josh King brokered the sale of the property, while Eastdil’s Grant Frankel and Rob Turner arranged acquisition financing for the transaction. “There is a substantial opportunity to transform this property,” says Todd Bassen, MRA’s CIO and managing principal. “The building is uniquely positioned to attract a large-format retailer in the base—perhaps a grocer, big-box retailer, or multiple commissary and ‘maker’ users. “In addition,” he continues, “we have the ability to create a unique 80,000-square-foot contiguous block of office space on a single floor, featuring a 7,000-square-foot skylight, a rarity in New York City.” Among its features are 16- to 21-foot ceilings, floor to ceiling window line, a 7,000-square-foot pitched skylight in the center of the second floor and abundant skylights throughout the third floor. The property also features abundant parking with easy vehicular access off 47th Avenue and has eight loading docks. “As office and retail rents in Manhattan and Brooklyn continue their dramatic rise, more tenants view Long Island City as a viable alternative,” Bassen adds. “It not only has the live/work/play aspect companies desire, but it’s only minutes away from Midtown by multiple subway lines, including the 7, E and M.” “This building-wide renovation is a great collaboration given that both firms have a long history of redeveloping assets throughout the New York metropolitan region,” says Dimpesh Darjee, a director on TIAA Global Asset Management’s northeast acquisitions team. “We recently redeveloped, re-leased and have now fully stabilized over a million square feet of vacant Midtown office space, including 685 Third Ave. and 475 Fifth Ave.” “Our purchase reinforces the increasing demand for Long Island City, and we expect this trend to continue,” asserts Bassen. “The acquisition also plays into MRA’s stronger focus on New York City acquisitions and advancing the firm’s growth in the five boroughs.”