Normandy's Terminal Warehouse in West Chelsea.
NEW YORK CITY- Columbia Property Trust, Inc., a real estate investment trust, has signed a definitive agreement to acquire its long-time business partner Normandy Real Estate Management, LLC, a developer, operator and investment manager. The transaction is dated to close by year-end, subject to customary closing conditions.
Columbia will acquire Normandy's operating platform and real property interests for approximately $100 million, including $13.5 million in cash and approximately $86.5 million in convertible preferred units, issued at a strike price of $26.50 per share.
In addition, Columbia will acquire Normandy's general partner interests in three active management funds. The general partnerships and several limited partnership interests total approximately 2 percent in each of Normandy Real Estate Fund III, LP; Normandy Real Estate Fund IV, LP; and Normandy Opportunity Zone Fund, LP.
"Expanding our platform – both our capabilities and presence in our key markets – is highly supportive of Columbia's long-term growth objectives. Combining the Columbia and Normandy teams enhances our mutual talent, resources and relationships, and strengthens our position as a leader in our target markets," said Nelson Mills, president and CEO of Columbia, in a prepared statement.
Normandy's portfolio boasts over 30-million-square-feet of office space across New York, New Jersey, Boston, and Washington, DC. The transaction has been approved by Columbia's Board of Directors and Normandy's ownership partners.
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Mariah Brown
Mariah Brown is the New York Bureau Chief and Real Estate Reporter for GlobeSt.com, covering the New York Metro area, Northeast region and national real estate trends. She is responsible for producing multi-media content, including articles, podcasts and video. Before joining the GlobeSt team, she served as a New York Times fellow, reported for the Associated Press in New York and Philadelphia and several other New York City-based outlets.
