NEW YORK CITY—EmblemHealth has sold its office property at 441 Ninth Ave. to a partnership of Kevin Hoo's Cove Property Group and the Baupost Group. The partnership paid $330 million for the 423,000-square-foot property, which it plans to expand and redevelop.
Real Estate Alert first reported this past August that 441 Ninth was under contract to the Cove/Baupost partnership. The health insurer currently occupies the eight-story property in its entirety, but is expected to vacate in 2017. A vertical expansion that will add 150,000 square feet is in the works for 441 Ninth, which is located near Related Oxford's Hudson Yards mega-project and Brookfield's Manhattan West development.
A Venable team consisting of Peter Koffler, Sue Golden, Steven Weinberger, Sharon Connelly and Jared Wachtler represented EmblemHealth as legal counsel in the sale; CBRE brokered the deal. Commercial Real Estate Direct reported this week that Deutsche Bank provided the buyers with $220 million of floating-rate acquisition debt. A Cole Schotz team including members Leo V. Leyva, Jordan J. Metzger, Christopher J. Caslin, Gerald H. Gline, Jordan A. Fisch, Rab N. Nalavala, Jan Lewis and Joseph Barbiere; special counsel Robyn A. Pellegrino; and associates Patrick Quinn, Elizabeth C. Navatto, Matthew S. Schneid, Joseph Armenti; and paralegal Marilyn Bernard advised Cove on the financing as well as the acquisition.
EmblemHealth's predecessor, Group Health, bought the property in 1994 for $30.7 million. 441 Ninth was built in the 1950s as a warehouse and was redeveloped into office space after Group Health acquired it.
The sale represents the second high-profile acquisition this year by Cove, a new firm launched by managing partner Yoo along with partners Amit Patel and Thomas Farrell. In March, Cove and Bentall Kennedy teamed up to buy 2 Rector St., a Lower Manhattan office property, for $225 million from Kushner Cos. and CIM Group.
Real Estate Alert first reported this past August that 441 Ninth was under contract to the Cove/Baupost partnership. The health insurer currently occupies the eight-story property in its entirety, but is expected to vacate in 2017. A vertical expansion that will add 150,000 square feet is in the works for 441 Ninth, which is located near Related Oxford's Hudson Yards mega-project and Brookfield's Manhattan West development.
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EmblemHealth's predecessor, Group Health, bought the property in 1994 for $30.7 million. 441 Ninth was built in the 1950s as a warehouse and was redeveloped into office space after Group Health acquired it.
The sale represents the second high-profile acquisition this year by Cove, a new firm launched by managing partner Yoo along with partners Amit Patel and Thomas Farrell. In March, Cove and Bentall Kennedy teamed up to buy 2 Rector St., a Lower Manhattan office property, for $225 million from Kushner Cos. and CIM Group.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
