Taconic Partners and Nuveen Real Estate are joining forces once again, this time on the purchase of an Upper East Side office loft building.
The developers, along with Flatiron Equities, acquired the building for $70 million in an all-cash deal from the Karten family, which owned it for almost four decades, Crain’s reported. The 87,000-square-foot building spans the lots of 309 East 94th Street and 324 East 95th Street and includes a two-story garage and an auto shop.
The developers have the ability to build up to 205,000 square feet, Taconic president Chris Balestra told Crain’s. The outlet reported it’s not clear what the firms will redevelop the property into, but general and medical office use are among the considerations.
Rental apartments do not appear to be one of the considerations, as the property is zoned for office use. According to Crain’s, construction won’t begin for at least a year, but is expected to finish by 2025.
The garage is likely to be knocked down as part of the building’s redevelopment, Crain’s reported. More floors, meanwhile, may be added to the five-story building.
If the developers decided to create medical office space, they’ll be joining an increasingly crowded market on the Upper East Side.
Gary Barnett’s Extell Development is developing a 30-story, 400,000-square-foot building between 79th and 80th streets on First Avenue, which is expected to break ground this year. About half of the building is pre-leased to the Hospital for Special Surgery for physicians’ offices and other services.
Nuveen and Taconic have a history of partnering up for sizable Manhattan projects. In July, Taconic, Nuveen and Squire landed a $125 million refinancing of its building at 817 Broadway. The funds provided capital for tenant fit-out work and leasing costs, as well as the payoff of a $102 million acquisition loan from Mesa West.
The firms in February completed a $600 million recapitalization of their office building at 125 West End Avenue. The developers secured $393 million in construction financing and a $207 million equity partner.[Crain’s] — Holden Walter-Warner