Taconic sells BankNote Building for $114 million to Marquette and Weinberg

ABN Associates LLC - comprised of affiliates of Taconic Investment Partners and Denham Wolf Real Estate Services - has completed the sale of the BankNote Building located at 1201 Lafayette Ave., to a joint venture between Madison Marquette and Perella Weinberg Partners Asset Based Value Strategy for $114 million. Located in the Hunts Point section of the borough, the 400,000 s/f former industrial home of the American BankNote Company was purchased by Taconic in 2007 and was 70% vacant at the time. The landmarked, class A building is now 93% leased having undergone an extensive, $58 million capital and tenant improvement plan. Recently, Taconic secured a 200,000 s/f office lease for the Human Resources Administration (HRA) and completed the build-out of the new space in just nine months. "We're excited to have achieved our goal of creating a great office complex that acts as a hub of energy, creativity and job creation for the neighborhood and surrounding community," said Charles Bendit, co-chief executive officer of Taconic. "The BankNote Building was a challenging project given the economic landscape of the past seven years and we're incredibly proud of its success." The new ownership is expected to retain the existing on-site management team to handle the day-to-day operations of the building. Other non-profit and business tenants at the building include BOCNET, Iridescent-ONR, the Hunts Point Alliance for Children, Urban Health Plan, JVL Charter School, Fedcap and the office of Congressman José Serrano. "We are very excited that Madison Marquette's partnership with Perella Weinberg Partners continues to grow with the acquisition of the Bank Note Building. This deal extends our joint commitment to building value in emerging infill urban markets with substantial promise for the future. We are also excited at the opportunity of participating in and contributing to the rapidly emerging revival of the Bronx - with its extraordinary proximity to New York's urban core. The BankNote is ideally suited to join Madison Marquette's portfolio of platinum-level retail and mixed-use properties in major coastal gateway markets," said Amer Hammour, chairman of Madison Marquette. David Schiff, partner at Perella Weinberg and portfolio manager at Asset Based Value Strategy, said, "We are excited to be acquiring The BankNote Building, an historically significant and renowned property. This acquisition is in line with our strategy of identifying and purchasing first-rate properties in high-density urban areas with topnotch tenants, and we look forward to being its next stewards in a community that continues to experience significant development." About the BankNote Building Built in 1909, The BankNote is an office and retail complex that was formerly the home of The American Bank Note Company. The architecturally distinct landmark building has quickly become a hub for creative companies, non-profits, community organizations and schools by providing a unique combination of professional and affordable space in the burgeoning South Bronx community. The class-A building, the only one if its kind the neighborhood, features flexible, customizable spaces that can be tailored to fit the needs of a variety of tenant types and uses. The BankNote was designated a New York City landmark in February 2008 by the Landmarks Preservation Commission, with the support of the Municipal Art Society of New York, the Historic Districts Council and Bronx Community Board 2. About Taconic Investment Partners Taconic Investment Partners is a fully integrated, owner, operator and developer of commercial and residential real estate. From adaptive reuse and urban revitalization to luxury residential development, Taconic leverages proven expertise, a diverse set of capabilities, and a visionary approach to maximize investment returns. Co-founded in 1997 by Charles Bendit and Paul Pariser, the Manhattan-based firm has developed, redeveloped and repositioned over 12 million square feet of office, mixed-use and retail space and more than 3,000 units of for-sale and multi-family housing in New York City, with select projects in Chicago, Washington, D.C. and Atlanta. Taconic is currently developing 837 Washington Street, a 55,000-square-foot office and retail building located in the Meatpacking District, and The Sterling Mason, a boutique luxury condominium in Tribeca, and is rezoning 525 West 52nd Street for residential development. In September 2013, Taconic announced a joint venture with L +M Development Partners and BFC Partners to develop Essex Crossing, a 1.8 million-square-foot mixed-use project that will transform a six-acre swath of mostly vacant land on the Lower East Side.