Meatpacking’s 860 Washington valued at $80M in sale-leaseback

A glassy building in the Meatpacking District that’s home to some of 2020’s hottest companies is now valued at $80 million after the partners who developed it completed a sale-leaseback deal.

Romanoff Equities bought the 10-story building at 860 Washington Street from co-developer Property Group Partners, records filed with the city Thursday show. The purchase price works out to about $700 per square foot.

At the same time, Romanoff leased the asset back to Property Group Partners for a term of 99 years.

Representatives from Romanoff and Property Group Partners could not be immediately reached for comment. A Cushman & Wakefield team of Adam Spies, Doug Harmon, Kevin Donner and Marcella Fasulo brokered the sale between PGP and Romanoff.

Built in 2016, 860 Washington Street was among a handful of small, boutique commercial buildings that helped transform the Meatpacking District into a highly desirable office neighborhood. These properties commanded triple-figure rents that are rarely seen in areas of Manhattan outside the most prime stretches of Midtown Manhattan.

Tenants include Tesla, which has a ground-floor showroom, and which has seen its stock price explode in 2020. Its stock closed above $620 per share this week, more than seven times what it was trading for at the beginning of the year.

The Softbank-backed online lender SoFi, which is reportedly considering a public listing amid this year’s white-hot IPO market, is also a tenant in the building alongside other companies including Alibaba and Delos Living.

Romanoff Equities, headed by Michael Romanoff, owns a number of properties in the Meatpacking District, and teamed up with Jeffrey Sussman’s Property Group Partners in 2013 to develop the building.