L&L Holding Co. and Columbia Property Trust have secured $1.25 billion in construction financing for the renovation of the Terminal Warehouse, putting in motion the restoration and transformation of the 1.2 million square-foot office, retail and self-storage facility into a workplace and retail destination in Manhattan's West Chelsea neighborhood.

Vehicles managed by the Blackstone Real Estate Debt Strategies platform led the $974 million senior loan and senior mezzanine loan financing with Goldman Sachs and KKR participating, while funds managed by Oaktree Capital Management, L.P. led the $274 million junior mezzanine financing in partnership with Paramount Group.  With the loan package—the largest construction financing to date in New York City this year, according to the companies—now secured, L&L and Columbia are ready to begin major construction. 

 In collaboration with architectural firm COOKFOX, L&L and Columbia are converting Terminal Warehouse's 550,000 square feet of self-storage space into offices while also reimagining its ground floor retail and common areas. As part of the project plan approved by the New York City Landmarks Preservation Commission in January 2020, floor area will be removed to make room for the new courtyard, a series of double-height interior spaces throughout the western portion of the building, and six new office floors with floor-to-ceiling glass overlooking the Hudson River. The project is estimated to be completed in 2023.