Moinian Group Closes Deal on 3 Columbus Circle

NEW YORK CITY—The Moinian Group closed on its acquisition of 3 Columbus Circle, the office building where the real estate developer, owner and operator runs its headquarters. In August, the ownership announced that SL Green was selling its 48.9% interest in the building to the Moinian Group for $233 million. VMLY&R  still owns a six-story office condominium within the property. In September 2018, the WPP Company announced the creation of the new agency VMLY&R, merging the brands of VML and Y&R (Young & Rubicam).

In September 2010, the Related Companies had bought the $250 million debt on the property and was going to foreclose on the 25-story tower, which was nearly vacant and financially troubled, according to The New York Times. In 2011, SL Green made a $139 million equity investment in the property, as reported in Commercial Observer. The $248.2 million of debt which was purchased by Deutsche Bank and Related Companies was retired and replaced with an SL Green and Deutsche funded bridge loan.

In 2012, employing the architecture firm Gensler, the Moinian Group oversaw extensive renovations to the building, which had originally been constructed in 1927 as General Motors’ headquarters. It was later called the Newsweek Building but the weekly publication had subsequently left the building. The upgrades included replacing the pre-war brick façade and creating a new lobby. Following the capital improvements, the building was 100% leased and continues to remain fully leased. Current office tenants include VMLY&R and Versace USA. Nordstrom, Chase and CVS lease retail space.

“When the Moinian Group purchased 3 Columbus Circle nearly 20 years ago, it was a milestone achievement for our firm and it has always held a special place in our portfolio,” says Joseph Moinian, founder and CEO of the Moinian Group. “As our roster of commercial and residential projects continues to grow — including the rising 3 Hudson Boulevard on the Far West Side — 3 Columbus Circle remains a benchmark for the standard of quality and excellence that we aim to achieve.”