The Real Deal New York

Yeshiva University refinances five Manhattan buildings

School takes out $175M debt amid ongoing recovery from $105M loss in Madoff’s Ponzi scheme

September 12, 2014 11:50AM

From left: 215 Lexington Avenue, 245 Lexington Avenue and 2495 Amsterdam Avenue

From left: 215 Lexington Avenue, 245 Lexington Avenue and 2495 Amsterdam Avenue

Yeshiva University has taken out a $175 million, 10-year loan from the Kansas City-based UMB Bank to refinance five of the university’s educational buildings in Manhattan.

The debt takes the place of previous short-term loans coming due at the end of this fiscal year, a spokesperson for the school told the New York Observer. Located at 215, 245 and 253 Lexington Avenue and 2495 and 2520 Amsterdam Avenue, the properties count Yeshiva College and Stern College for Women among their tenants, according to public records cited by the Observer.

“As part of this financing, the university pledged several of its core assets located on the Wilf and Beren campuses as collateral, without affecting its core academic missions,” a spokesperson for the university told the paper. “The university continues to own an expansive and valuable real estate portfolio across three Manhattan campuses.”

The move follows Yeshiva’s 10-building, $72.5 million sale in May, and comes amid the institution’s ongoing struggle to recover from the loss of an estimated $105 million in former board member Bernie Madoff’s Ponzi scheme. The school unloaded four Midtown office buildings in the winter of 2013 for just over $200 million. [NYO]Julie Strickland

  • David Brown

    Extremely bad reporting. How does the fact that YU lost $100MM to Madoff in 2008 have anything to do with them running a $150MM deficit in 2013? YU is selling and remortgaging buildings because of (a) its massive recurring losses on hospital operations, (b) high cost multi-campus infrastructure and (c) poor investment returns unrelated to Madoff. Please!

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