Manhattan Properties, a U.S. real estate investment firm, has concluded with the divestiture of the Textile Building, an office property located in a prime Manhattan corridor, through a 99-year ground lease.
Completed in 1921, the 17-story building is located at 295 Fifth Ave. and includes a 400,000-square-foot textile showroom, which is still in use by the industry today, as well as 30,000 square feet of street-level retail.
Manhattan Properties sold the asset to a joint venture (JV) among U.S. real estate investor, developer, and operator Tribeca Investment Group and funds managed by PGIM Real Estate as well as peer Meadow Partners.
The JV plans to invest $300 million to reposition the building into a Class A asset. Planned upgrades include a new lobby, updated retail storefronts, more amenity spaces and significant mechanical upgrades, as well as a glass-enclosed rooftop area.