P.49 P P P P4 P.4 P.4 P.49.4949494999
Midtown (cont’d)
111 West 57th Street (Columbus Circle) – The partnership of JDS Development and Property Markets Group secured a $725 million construction loan from lenders AIG and ARI, a subsidiary of Apollo Global Management. The senior loan provided by AIG totaled $400 million. The $325 million fl oating rate mezzanine loan provided by ARI has a 4-year initial term with one 12-month extension option, an appraised loan-to-net sellout of 42%, and has been underwritten to generate an internal rate of return of approximately 16%. ARI reportedly funded $41 million; and another $50 million was acquired by an affi liate fund of Apollo Global Management. The new debt will allow the developers to refi nance a $230 million loan previously provided by Annaly Capital.
The planned 80-story residential condominium has already begun construction, having received permit approvals in January. It is located along the corridor that has become labeled “Billionaire’s Row.” The slender tower which will incorporate the former Steinway Hall building, 109-113 West 57th Street is expected to reach a linear height of roughly 1,438-feet with a width of only 60-feet; and house about 60 full-fl oor units. Restoration of the landmarked ground full-fl oor interior in the former Steinway building that boasts an ornate domed ceiling with marble columns, will upon completion serve as part of the retail space for the new tower.
The joint venture paid a total of $217.8 million for the assemblage, purchasing Steinway Hall, 109-113 West 57th Street for $46.3 million plus an additional $131.5 million for the ground fee and $40 million for the adjacent 105-107 West 57th Street property; having secured a one-year, interest-only $230 million acquisition loan. The tower’s construction is expected to be completed before the end of 2016 and will be using non-union labor. The development is reportedly ranked as the tallest and most complex tower to rise in the city without union labor, potentially setting a precedent for other developers to consider in the future.
Manhattan Mall, 100 West 33rd Street (Penn Plaza) – Vornado Realty Trust closed on a 5-year, interest only loan totaling $580 million to refi nance the over 1.1 million-square-foot mixed-used tower from lender Minneapolis-based U.S Bank, reportedly netting a profi t of $242 million. The interest-only loan has a rate of Libor plus 1.65%, and matures July 2020. The REIT acquired a 95% stake for $689 million in 2007, having refi nanced the building’s mortgage on 2-previous occasions in 2012 for $325 million which was due to expired in March 2015, netting Vornado $87 million in the process; and in 2007 for $232 million. The 14-story mixed-use building is comprised of 851,000- and 256,000 square feet of offi ce and retail space respectively. Currently advertising fi rm FCB anchors the offi ce component in roughly 462,888 square feet, and department store J.C. Penney anchors the retail in about 150,000 square feet.
1440 Broadway (Penn Plaza) – New York REIT (formerly American Realty Capital) has secured $325 million in fi nancing for the 593,532-square foot building from an undisclosed lender. The REIT which was acquired by investment fi rm Apollo Global Management in August, purchased the property in 2013 for $528.6 million ($891 per square foot) from the Rockpoint Group and Monday Properties. The building is home to Macy’s fl agship store which spreads across roughly 197,000 square feet through a lease that was extended 11-years in June.
38-46 West 33rd Street (Penn Plaza/Koreatown) – The Torkian Group secured a $105 million construction loan from Israeli-based Bank Leumi for the planned development of a 36-story, 165,901-square-foot residential project. The 3-year debt carries a Libor-based fl oating rate, no pre-payment penalties, and interest-only payments throughout the entire term. The new 198-unit tower will replace a 325-car ICON parking garage that the developer acquired in 2007 for $30 million ($181 per buildable-square-foot). Another $14.85 million was invested for the acquisition of additional development rights — $13.2 million from Rick’s Cabaret at 50 West 33rd Street; and $1.65 million from above the adjacent storefront, for a total assemblage cost of $44.85 million ($270 per buildable square feet). Excavation for the project is already underway for a potential completion by 2017. Plans which were modifi ed in June were originally fi led last September.
Lending - Reported Loans Secured (cont’d)
P.50 P P P P5 P.5 P.5 P.50.5050505000 15 Hudson Yards - Rendering
Midtown (cont’d)
787 Eleventh Avenue (Clinton/Hell’s Kitchen) – The partnership of The Georgetown Company and Pershing Square Capital Management, a hedge fund controlled by the Ackman family secured a $180 million bridge loan from lender JPMorgan Asset Management. The debt helped fund the $255.5 million acquisition that closed in early July .of the 8-story, 387,619-square-foot commercial building sold by the Ford Motor Co. Pershing Square which is currently housed in 31,000 square feet at 888 Seventh Avenue plans to occupy a portion of the 11th Avenue building. Details of future plans for the building have yet to be announced by new ownership, having acquired the building about 2-months following the offering announcement. Ford Motor Co. acquired the building in 1997 for $73 million, renovating the building which the automaker used as a service center for Ford and Lincoln brand vehicles. The building’s retail space currently houses Jaguar and Land Rover dealerships on month-to-month leases.
416 West 52nd Street aka 411 West 51st Street (Hell’s Kitchen/Clinton) – Gaia Real Estate secured a $122.8 million acquisition loan from private equity investment fi rm TPG Real Estate Finance Trust to close on the purchase of the former 6-story, 182,247-square-foot St. Vincent’s Midtown Hospital building for reportedly
$156.5 million from the Chetrit Group. The 3-year, fl oating rate loan includes (2) 12-month extension options.
New ownership plans to upgrade the building and convert the empty apartments into condos.
The Chetrit Group had intended to redevelop the 60,000-square-foot site that can accommodate roughly 218,000 buildable square feet into a residential rental development upon acquiring the property along with adjacent 424-426 West 52nd Street for $84.73 million in 2007. The recession stalled the developer’s plans, ultimately deciding to sell the smaller site to the partnership of JVL Property, Okada Acquisitions, and Zion Enterprises for $41.4 million resulting in a 7-story, roughly 60,000-square-foot residential condominium conversion that was completed in 2013.
15 Hudson Yards (Hudson Yards) – The Related Companies and Oxford Properties Group have secured an
$850 million construction loan from London-based hedge fund the Children’s Investment Funds. The debt will help fi nance the construction of the condo portion of the mixed rental/condo development. The 70-story, 960,000-square-foot tower will be the fi rst residential building to rise within the 16-building complex.
Lending - Reported Loans Secured (cont’d)
387 Park Avenue South (Flatiron) – TF Cornerstone secured $100 million in permanent fi nancing for the 218,000-square-foot offi ce tower from the AXA Equitable Life Insurance Company, which also provided previous fi nancing for the building. Funds from the 15-year, fi xed-rate debt will cover recently completed $20 million in renovations along with future capital expenditures. The building is currently about 80%
leased, and notable tenants include Paris-based online advertising fi rm Criteo and real estate fi rm Citi Habitats. The building which serves as the developer’s headquarters was acquired in 2005 for $68 million ($312 per square foot).
51 Astor Place (Greenwich Village) – New York-based Edward J. Minskoff Equities secured a $370 million loan from lenders Bank of America and Barclays. The funds will refi nance and pay off the $165 million construction fi nancing by the Bank of America secured in 2011 for the12-story building that delivered in 2013. The building’s offi ce component is 100% occupied with IBM’s Watson Group and St. John’s University its largest tenants; and the roughly 23,500 square feet of retail is now 50% occupied as a result of the 11,500-square-foot signing by CVS Pharmacy announced in July. Construction of the 400,000-square-foot building came at a price tag of about $300 million, of which the developer reportedly provided $135 million in equity to help fi nance.
540-544 West 26th Street (Chelsea) – Savanna secured a $115 million construct loan from lender Deutsche Bank. The new debt will be applied to the construction of a 166,525-square-foot mixed-use development that is being built along with the Silvermintz family reportedly through a joint venture.
The Avenues: The World School will be housed in 51%, or 85,421 square feet spread across the entire 2nd-5th fl oors plus portions of the basement and ground levels which has been pre-leased to the international private school system. Upon construction delivery, the 9-story building will house a mix of offi ce, gallery and community facility space. Demolition of the former 2-story art gallery has already been completed and excavation is expected to begin in soon for an expected 2017 completion. Savanna had acquired a stake in the property in 2014 for $24.7 million.
444 Park Avenue South (NoMad) – Moin Development and SBE secured a $109 million loan from lender Fortress Investment Group for the recapitalization and restructuring of the existing mortgage. The development team is nearing the completion of the $150 million renovation of the building which is being converting into an SLS Hotel. The project also included a 6-story vertical expansion of the 14-story offi ce building acquired in 2011 for $45 million. The hotel is slated to open next spring.
209-225 East 19th Street / 224-228 East 20th Street (Gramercy Park) – Co-developers the Chetrit Group and Clipper Equity secured a total of $345.5 million in fi nancing for the multi-building redevelopment of the former Cabrini Medical Center which shuttered in 2008. The 3-year, $280 million senior debt that carries (2) one-year extension options was secured from a group of lenders led by Natixis Real Estate Capital along with Malaysia-based Maybank, Bank of China, Investors Bank and TD Bank. The $65.5 million mezzanine debt was provided by Apollo Commercial Real Estate Finance.
The 4-tax lot, block-through site located between 2nd- and 3rd Avenues was acquired in 2013 for $152.5 million from S.K.I. Realty, which had paid $83.1 million in 2010 according to city records. Dubbed Gramercy Square, several existing structures will be repurposed for residential use with the addition of a smaller building to be newly constructed. The hospital conversion follows in the footsteps of a similar redevelopment currently under construction by Rudin Management of the former St. Vincent’s Hospital located nearby that has been dubbed Greenwich Lane.
• 209-225 East 19th Street will have 140-units spread across 16-stories with signifi cant exterior changes that will replace the current small windows and overbearing façade with large glass panes;
• 228 East 20th Street / 227 East 19th Street will have 54-units each;
• 224 East 20th Street – the newly constructed building will have 8-full fl oor apartments.
152 Elizabeth Street (NoLita) – Manhattan-based Sumaida + Khurana secured a $40 million construction loan from Deutsche Bank for the planned 7-story, 27,090-square-foot residential condominium development. Located on the southeast corner of Kenmare Street, the existing 4-story garage was acquired for $21 million ($775 per buildable-square-foot) last year.
209-225 East 19th Street - Rendering
152 Elizabeth Street - Rendering 540-544 West 26th Street - Rendering
Lending - Reported Loans Secured (cont’d)
P.52 P P P P5 P.5 P.5 P.52.5252525222
Downtown
Broadway Atrium, 45 Broadway (World Trade Center) – Cammeby’s International secured a 12-year, $95 million loan from lender Cornerstone Real Estate Advisers. The refi nance deal was reportedly at a 3.78% fi xed interest rate with 6-years of interest-only payments followed by a 30-year amortization schedule. Funds from the new debt will replace a $72.4 million loan securitized by JPMorgan Chase. The building is nearly 100% leased, larger tenants include law fi rms Cozen O’Connor and Winget, Spadafora & Schwartzberg; and information technology provider MTM Technologies. The 394,792-square-foot building was acquired by Cammeby’s in 2000 for $60 million ($152 per square foot); and is currently commanding asking rents in the range of $40-$50 per square foot according to sources.
70-74 Vestry Street aka 268-269 West Street (TriBeCa) – Related Companies secured a total of $200 million in loans from the Bank of America to help fund the construction of a planned 13-story, 154,019-square-foot residential condominium development. Although details of the transaction were not released, the debt was divided into 2-separate loans valued at $161 million and $39 million. The 47-unit project that spans 6-tax lots will run the entire block facing West Street between Vestry and Desbrosses Streets; and is reportedly being constructed along with Ponte Equities.
Uptown
219-223 West 77th Street (Upper West Side) – The Naftali Group secured a $104 million construction loan from German-based lender Deutsche Bank in August. Details of the fi nancing deal for the planned 18-story, 79,899-square-foot development were not disclosed. The 25-unit project that will include a 1,624-square-foot ground-level commercial component replaces a 5-story garage which the developer acquired in November for $63 million ($788 per buildable-square-foot) from the partnership of David
Berley of Walter & Samuels and garage investor Arnold Penner. 219-223 West 77th Street - Rendering