Globix NYC Building Sold for $51 Million
October 6th, 2006 By: Rich Miller
Two veteran telecom investors have teamed to purchase the New York headquarters building of Globix Corp., which is exiting the hosting business completely after a history of both boom and bust. Globix has sold its building at 139 Centre Street to a group led by affiliates of Young Woo & Associates and Angelo, Gordon Real Estate Funds, who paid $51.8 million. The property consists of three plots on Centre and Lafayette Streets in Manhattan.
The buyers have agreed to allow Globix to maintain operations through May 31 in order to “finalize alternative arrangements of the business of Globix conducted at this facility.” The terms allow the property to be assigned to an entity controlled by either Angelo Gordon & Co. or Young Woo & Associates, LLC.
While it invests in many types of properties, Young Woo has specific expertise in carrier hotels, with a portfolio of more than 3 million square feet of telecom space, including New York telecom properties at 325 Hudson Street, 636 Eleventh Avenue and 85 Tenth Avenue, as well as 180 Peachtree Street in Atlanta, 1300 Federal Boulevard in Carteret, N.J. and 121 Brainard Road in Hartford, Ct.
Angelo, Gordon is a privately-held investment firm headed by John Angelo and Michael Gordon, who both previously worked at L.F. Rothschild. The firsm is “dedicated to alternative investing,” including distressed properties and real estate that can be repositioned. “Generally, we will work in tandem with one of many local operating partners to source real estate deals and correct the asset’s under-performance,” the firm notes. Young Woo and Angelo, Gordon have worked together on several NYC deals.
The history of Globix closely tracks broader industry trends, as it built big during the dot-com boom, commissioning 400,000 square foot data centers in New York and Boston to accommodate an expected flood of hosting customers. The company later filed for bankruptcy protection, emerging as a leaner competitor. Earlier this year, the company reviewed its operations and decided to focus on its network connectivity business.