Columbia Property Trust Inc. is acquiring a roughly 50% ownership interest in the 799 Broadway office project in Manhattan, N.Y., for upward of $70 million from Ares Management LP, Crain's New York Business reported, citing an unnamed source.
The office-focused real estate investment trust and the project's co-owner, Normandy Real Estate Partners LLC, plan to convert the existing six-story property into a 182,187-square-foot boutique office asset, which is expected to cost at least $150 million to build.
The publication added that the Ares Management interest that the REIT is purchasing reflects a slight majority stake in the project. The deal is expected to close by 2018-end.
Cushman & Wakefield is brokering the sale on behalf of the asset manager.