Capstone seeks help at 14 Wall Street

TRD New York /
Feb.February 01, 2012 09:30 AM

Capstone Equities is scouring the market for cash so it can repay the mortgage on its stake in 14 Wall Street before it comes due in May, Crain’s reported. If Capstone, which bought the 37-story, 1 million-square-foot building with the Carlyle Group for $325 million in 2007, doesn’t find a partner, mezzanine debt holder Shorenstein Properties will likely move in on its stake.

Carlyle has already written off the investment as a loss, according to Crain’s, so it isn’t helping in the search for another partner.

Capstone and Carlyle have struggled with the investment because they bought the property at the height of the market, expecting to be able to raise rents. However, office rents plummeted and the ownership group has been reluctant to lower rents to levels that could attract tenants in a slow leasing environment.

Capstone is one of many property owners likely to be soliciting investors as a huge swath of loans originated in 2007 come due this year. However, sources told Crain’s that Capstone values the building at about $300 million, or one-third more than its perceived value, hindering their ability to obtain that cash. [Crain’s]

Related Articles

235 West 48th Street and Carlyle Group managing director Jason Hart (Credit: Google Maps and Carlyle Group)

Carlyle takes majority stake in Ritz Plaza rental building for $251M

The mobile home park model is “financially catastrophic” for homeowners, John Oliver says

Slate Property’s Scale Lending strikes first deal for a Brooklyn resi project

Carlyle Group expands at One Vanderbilt

These were the top 10 outer borough loans last month

Carlyle Group pays record price for Queens rental tower, scores $180M loan

National Cheat Sheet: Flooding threats hurting coastal home prices, CBRE gets into coworking … & more

Carlyle Group secures $160M refi for
866 UN Plaza