Columbia Property Trust has signed a definitive agreement to acquire Normandy Real Estate Management, LLC, a developer, operator and investment manager of office and mixed-use assets in New York, Boston, and Washington, D.C. for approximately $100 million in cash and stock, exclusive of transaction and closing costs. The transaction is expected to close by year-end.
“Expanding our platform — both our capabilities and presence in our key markets — is highly supportive of Columbia’s long-term growth objectives. Combining the Columbia and Normandy teams enhances our mutual talent, resources and relationships, and strengthens our position as a leader in our target markets,” said Nelson Mills, president and CEO of Columbia.
In addition to Normandy’s property and investment management businesses and their related fee streams, Columbia will acquire the general partnership interests and certain limited partnership interests totaling approximately 2% percent in each of Normandy Real Estate Fund III, LP; Normandy Real Estate Fund IV, LP; and Normandy Opportunity Zone Fund, LP. Not included in the transaction are Normandy Real Estate Fund, LP and Normandy Real Estate Fund II, LP, as well as several mixed-use suburban development projects.
Over the past two decades, Normandy has acquired or developed over 30 million square feet of office space across New York, New Jersey, Boston, and Washington, D.C., including dozens of major headquarters facilities for leading companies. The firm has also completed many value-adding repositioning projects.
Current projects in Manhattan include the Terminal Warehouse, a1.2–million‑square‑foot, brick-and-beam property in the West Chelsea Historic District, and 888 Broadway, a 237,000-square-foot, architecturally significant redevelopment in the Flatiron District. In addition, Columbia and Normandy have previously announced joint venture partnerships on 799 Broadway, a 182,000-square-foot, ground-up development project near Union Square Park, and the redevelopment of 250 Church Street in TriBeCa.
Founded in 2002, Normandy is led by partners Finn Wentworth, David Welsh, and Jeff Gronning. Wentworth is expected to join Columbia’s board of directors. Welsh will serve as Chairman of the Investment Committee for Normandy’s Funds III and IV, in which Columbia will acquire general partner interests. Gronning is slated to become chief investment officer for Columbia, while fellow Normandy partners Gavin Evans and Paul Teti will also join Columbia’s senior leadership team
Morgan Stanley is exclusive financial advisor for Columbia; Kelley Drye & Warren and King & Spalding are legal advisors to Columbia. Moelis & Company is acting as exclusive financial advisor and Goodwin Procter as legal advisor to Normandy.
