Daniel Loeb, the hedge fund manager of Third Point LLC, acquired a controlling stake in a 150,000 square foot property (a three-storey building) in Long Island City. Brickman, a real estate firm owns the property.
According to city records, Brickman bought the warehouse for $21 million two years ago. It is located at 30-03 48th Avenue, Long Island City. A source said the building’s market value is around $50 million.
Loeb did not publicly disclose the details of his investment in the property. However, it is a sign that the activist investor sees opportunity in the real estate/office market in Long Island City.
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Loeb and Brickman plan to renovate the warehouse into office spaces
A report from Crain’s New York Business indicated that Loeb and Brickman plan to renovate the three-storey building and transform it into office spaces. The activist investor and the real estate firm will spend several millions of dollars to install elevators and build a new lobby and roof deck.
Aside from Loeb, several investors made investments in Long Island City. Last year, Vornado Realty Trust bought the Center Building from Madison Marquette for $142 million. RXR purchased the Standard Motors Building for more than $100 million. Invesco acquired a minority stake in the Factory Building located at 30-30 47th Avenue.
Investors are betting that Long Island City would become a destination for office space. The city is considered as a cheaper back-office location for companies. Lyft and Doughnut Plant recently opened offices in the Falchi Building located at 48th Street.
Loeb declined to comment on Crain’s inquiry regarding his investment in the property. Adam Spies, Doug Harmon and Adam Doneger of Eastdil Secured handled the transaction on behalf of Brickman, were not available for comment.
Hedge Clippers protest against Loeb
The Hedge Clippers protested at Loeb’s house on the beach in East Hampton last week, when he was hosting a fund-raiser for Governor Adrew Cuomo.
The protesters displayed placards that reads, Hedge Funds=Inequality. They also chanted, “Cuomo, Cuomo, you can’t hide, we can see your greedy side”. The Hedge Clippers complained that Loeb is hurting public schools by supporting charter schools. Loeb is the chairman of Success Academy charter schools.