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REA
August 01, 2018  

Rockpoint Showing New Manhattan Complex

A Rockpoint Group partnership is marketing the leasehold interest in a new office complex in Manhattan’s Meatpacking District.

The 256,000-square-foot property, which includes 46,000 sf of retail space, stretches from West 14th to West 15th Streets, midway between Ninth and Tenth Avenues. It consists of back-to-back buildings: a new 18-story tower at 412 West 15th Street, and a redeveloped low-rise building, stretching over multiple parcels, at 413-421 West 14th Street. The occupancy rate is nearly 60%.

Bids are expected to come in at about $350 million, or $1,367/sf. Cushman & Wakefield is representing Boston-based Rockpoint and its partner, Highgate Hotels of New York. Meilman Family Real Estate of New York owns the underlying ground.

Highgate and Meilman Family originally planned to construct a hotel on the West 15th Street site, which formerly housed a meat-distribution facility. But in 2014, they abandoned that strategy. Highgate then joined forces with Rockpoint, which owned the leasehold interest in 413-421 West 14th Street, to develop the office complex on both sites.

The complex has entrances on West 14th and West 15th Streets, with a shared lobby in both buildings.

The tower has 130,000 sf of office space, with floorplates ranging from 6,000-10,000 sf, and multiple terraces. That space is being marketed to boutique financial and “creative” firms. The tower also has 12,000 sf of ground-floor retail space with floor-to-ceiling windows.

The wider, low-rise component has 80,000 sf of office space and 34,000 sf of retail space over four floors, with floorplates of 33,000 sf.

The sales pitch is highlighting the leases signed over the past two years. Argo Insurance took nearly 47,000 sf through 2033. Tikehau Capital, a French investment firm, is occupying the top two floors of the tower, totaling 10,000 sf, through 2029. Its rent is $195/sf, which is believed to be the highest for offices in the Meatpacking District, according to The Real Deal.

Other tenants include Regus (33,000 sf of office space and 1,500 sf of retail space, both through 2034) and Live Nation (21,000 sf through 2031). Overall, the complex has a weighted average office rent of $121/sf and a weighted average lease expiration of 2031.

The listing comes as investors continue to be attracted to the Meatpacking District, which has a trendy shopping district, high-end restaurants and modern office space amid active redevelopment.

In the marketing campaign for a different property earlier this year, Hodges Ward Elliott said that the neighborhood’s 5 million sf of office space was 98% occupied at rents that routinely exceeded $100/sf. Hodges Ward and Cushman jointly represented TH Real Estate in that $158.5 million sale of the 98,000-sf office building at 430 West 15th Street to Invesco Real Estate of Dallas. The price for the fully leased property translated to $1,617/sf.

The neighborhood is also home to the 1.2 million-sf Chelsea Market, which Alphabet bought in March from Atlanta-based Jamestown for $2.4 billion, or just under $2,000/sf, via Cushman. The office/retail building fully occupies the block stretching from Ninth to Tenth Avenues, between West 15th and West 16th Streets.