Port Authority sells remaining interest in WTC retail project to Westfield Group
New York — In a continued effort to return the Port Authority of New York and New Jersey to its core mission, the Board of Commissioners today approved the sale of the agency’s remaining 50% joint venture in the World Trade Center retail project to the Westfield Group for $800 million.
The purchase involves approximately 365,000 sq. ft. of retail space at the World Trade Center Transportation Hub, including future bi-level retail offerings in the newly opened WTC West Concourse pedestrian corridor. Westfield also will have a major street level presence along Church Street, Cortland Way and Dey Street and above-grade in Tower 3 and Tower 4.
An additional 90,000 sq. ft. of retail space will be added for additional consideration when Tower 2 is developed in the future. The grand opening of the retail complex is expected to include a mix of 150 world-class brands and dining options when it opens in 2015.
The action comes a year and a half after the agency entered into a 50/50 joint venture with Westfield in May 2012, generating $612.5 million in private sector investment.
The Port Authority will retain ownership of the World Trade Center Transportation Hub, and will remain the contractor on behalf of Westfield to construct and deliver the retail space to its tenants.
Los Angeles’ $160 million One Santa Fe ‘tops out’
Los Angeles — The largest residential development currently under construction in downtown Los Angeles, One Santa Fe has been “topped out” by Bernards, the commercial builder directing the project.
Construction companies “top out” projects when they add the last beam to the top of a building.
Slated for completion in December 2014, the $160 million One Santa Fe is a mixed-use transit oriented development in downtown L.A. The project is a joint venture between Goldman Sachs Urban Investment Group and McGregor, Cowley and Polis.
Located in the Los Angeles Arts District, directly across from the Southern California Institute of Architecture, the four-acre site is owned by the Metropolitan Transit Authority and is close to Red Line and Purple Line entry points.
One Santa Fe is a five-story, 790,000-sq.-ft. project that will provide 438 residences and 78,620 sq. ft. of commercial space. The commercial component will include Metro offices, a grocery market, art gallery and theater. Amenities include 50,000 sq. ft. of public outdoor space with vertical gardens, a pool, outdoor terrace, streetscape elements, a pocket park and a rooftop garden. The structure also provides three levels for parking.
Funding for One Santa Fe came from a combination of public and private capital sources. The housing component received tax-exempt bonds issued by the California Housing Finance Agency and guaranteed by the U.S. Department of Housing and Urban Development plus low-income tax-credit equity provided by Goldman Sachs Urban Investment Group.
The commercial component was financed by a loan from the City of Los Angeles; tax-credit equity provided by the Goldman Sachs Group; tax credit allocations by Clearing house CDFI, a lending corporation focused on community development projects; and two local nonprofits established by the city to secure redevelopment funding, LA Economic Growth Corporation and the Los Angeles Development Fund.
StreetMac to manage recapitalized Stratford Square Mall
Northbrook, Ill. — StreetMac Asset Managers and Five Mile Capital Partners LLC have joined forces to recapitalize Stratford Square Mall in Bloomingdale, Ill.
The 1.3 million-sq.-ft. mall features more than 100 stores and restaurants, a 14-screen cinema complex and national retail anchors including Macy’s, Sears, Carson Pirie Scott, J.C. Penney, Kohl’s and Burlington Coat Factory.
The recapitalization came about when an affiliate of Five Mile Capital Partners gained control of Stratford Square in November 2011 by purchasing the mall’s distressed debt. Following the recapitalization, StreetMac Joined the transaction as the operating partner, taking an equity stake in the property alongside Five Mile and assuming management and leasing responsibilities.
This is StreetMac’s third retail mall investment in affiliation with Five Mile Capital Partners.