The Real Deal New York

MHP lands $238M loan for 850 Third Ave. acquisition

Developer, in partnership with HNA Group, closed last month on office tower for $463M

April 07, 2016 06:30PM
By Ariel Stulberg

850 Third Avenue in Midtown (inset: Norman Sturner)

850 Third Avenue in Midtown (inset: Norman Sturner)

MHP Real Estate Services landed $238 million in financing from Morgan Stanley to finance its acquisition of 850 Third Avenue, a 21-story office tower in Midtown East.

MHP, in partnership with Chinese investment firm HNA Group, entered into contract to buy the 614,000-square-foot building in January, and closed on the purchase at the end of March, property records show.

The financing consists of four parts: a $210 million acquisition loan, a $17 million building loan, a $465,000 project loan, and $10 million in debt transferred from the previous owner, Shorenstein Properties.

HNA is the building’s “equity owner,” while MHP is its “operating partner,” The Real Deal reported at the time of closing. HNA plans to set up a U.S. headquarters at the building for its HNA Capital division.

MHP, led by Norman Sturner, didn’t immediately return a request for comment. The firm’s recent deals include the acquisition of 180 Maiden Lane in partnership with Clarion Partners in late 2014.

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