Related, GreenOak take $60.8M loan for LIC office conversion

Partners paid $62.5M for the Blanchard Building at 21-09 Borden Ave. earlier this month

TRD New York /
Mar.March 22, 2016 01:08 PM

The Related Cos. and GreenOak Real Estate are proceeding with a planned office conversion in Long Island City.

The partners took out a $60 million loan for one of two planned projects this week, the Blanchard Building at 21-09 Borden Avenue, from lender TPG Capital, according to public records.

The funds consist of a $24.5 million construction loan, a $20.8 million gap mortgage and a $15.5 million senior loan.

The funds will likely go towards a planned premium office conversion at the building.

Related and GreenOak, a global real estate-focused investor, bought the 168,000-square-foot property earlier this month, paying $62.5 million to longtime owner Mortimer Klaus, the founder of the men’s clothing brand Burma Bibas.

Daniel Rahmani of Capital Property Partners brokered the off-market transaction, representing both sides.

The partners also bought the 108,000-square-foot Paragon Oils & Burners building, about a block away at 21-00 49th Avenue, from Morgan Manhattan Moving and Storage, who had owned it since 1998.

While no deeds have yet been filed for the latter purchase, the Wall Street Journal reported both sales totaled $110 million, meaning the partners likely spent about $47.5 million on the Paragon Building, which they also plan to convert.

Related declined to comment for this story, and GreenOak didn’t immediately respond to a request.

Broker information about the Blanchard Building deal was appended.

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