TPG Capital has provided a $57.1 million financing on the acquisition of a 112,000 sq ft storage building in the Long Island City neighborhood of Queens, New York.
The global alternative asset firm provided the loan to a joint venture between Related Realty and GreenOak real estate firm to purchase the Paragon Building at 21-00 49th Avenue, one of two properties a joint-venture purchased as part of an office development project. The seller, Morgan Manhattan Moving and Storage, had owned it since 1998.
Along with the Paragon building, the joint venture purchased the nearby seven-story Blanchard Building at 2109 Borden Avenue, paying a reported $110 million for both buildings. The seller of the Blanchard was Mortimer Klaus, the building’s longtime owner and president of the men’s clothing brand Burma Bibas.
“These two assets were an ideal fit for our execution-based strategy and will draw on our development and operational expertise as we transform these buildings into well amenitized, class A office space,” said Justin Metz, managing principal of related fund management at Related, in a prepared statement.
Long Island City is quickly becoming one of the most desirable neighborhoods in the city, he added. The project is expected to be completed in summer 2017.
Also this week, the New York branch of the Canadian Imperial Bank of Commerce (CIBC) provided a $75 million financing on a 413,000 sq ft multifamily residential project at 30-02 39th Avenue, also in Long Island City.
TPG has over $70 billion of assets under management and offices, according to the company. GreenOak currently has approximately $6.6 billion of assets under management globally and has raised $4.4 billion of equity to invest in targeted strategies and assets as of March 2016.