Caerus gets $50M Apollo loan for East 34th Street buys

Leo Tsimmer-led firm purchased Midtown office buildings for combined $90M

TRD New York /
Jun.June 09, 2016 07:05 PM

Leo Tsimmer’s Caerus Group secured $50 million in financing from mortgage REIT Apollo Commercial Real Estate Finance to fund its acquisition of two Midtown office buildings at 4 and 10 East 34th Street, according to property records filed with the city Thursday.

The Midtown-based investment firm finally closed on 4 East 34th Street for $38.2 million last month, after entering contract to acquire the five-story, 29,000-square-foot office-and-retail property from the Zionist Organization of America — which used the building as its headquarters – in December 2014.

Caerus also picked up the adjacent 10-story, 55,000-square-foot Ditson Building at 10 East 34th Street from Brause Realty for $51.7 million in February.

Tsimmer’s firm is funding its purchase of both buildings, worth a combined $89.9 million, with the loan from Apollo, records show. The real estate investment trust managed by an indirect subsidiary of private equity giant Apollo Global Management.

Tsimmer confirmed the financing, telling The Real Deal that Caerus intends to use the proceeds for the “repositioning and stabilization of the properties.” While Apollo declined to comment, the firm announced last month that it had closed a $50 million mortgage loan “secured by two office buildings with ground-floor retail in Midtown Manhattan.”

Of the $50 million provided, $44.8 million was provided at closing, according to an Apollo release, which specified the financing as a floating rate loan with an initial two-year term and a six-month extension option.

Caerus’ deal for 4 East 34th Street was held up by litigation with a former retail tenant at the property, B. Bowman & Co. – the operator of women’s clothing store Bolton’s. That action was eventually dismissed, allowing Caerus to proceed with the acquisition.

Tsimmer’s firm also acquired additional air rights from properties surrounding 4 East 34th Street, and paid between $70 million to $80 million for both the building and additional development rights combined.

As for 10 East 34th Street, Caerus said in a statement announcing the acquistion in February that it “intends to reposition the asset as a boutique 60,000-square-foot office building.” The company noted the property’s “high-ceiling, floor-through office lofts” as features that make it “particularly appealing to media, technology and showroom tenants.”

Between its acquisition of both buildings and surrounding air rights, Caerus has in excess of 150,000 buildable square feet across the two properties.


Related Articles

arrow_forward_ios
Jackpot: Cannabis REIT has $120M in capital to lend to operators

Jackpot: Cannabis REIT has $120M in capital to lend to operators

Jackpot: Cannabis REIT has $120M in capital to lend to operators
Tutor Perini's Ronald Tutor and Apollo's Leon Black (Credit: (Perini by Brian To/FilmMagic)

Acquisition talks for Tutor Perini dropped because of “volatile market conditions”

Acquisition talks for Tutor Perini dropped because of “volatile market conditions”
Cyril Berdugo and Tom Petit (Credit: Landis)

Proptech startup Landis inks deal to turn renters into buyers

Proptech startup Landis inks deal to turn renters into buyers
From left: 461 Dean Street, One Court Square and 18 Sixth Avenue

Queens tower led Brooklyn-saturated list of outer-borough loans

Queens tower led Brooklyn-saturated list of outer-borough loans
147-07 94th Avenue in Jamaica and Pheonix Realty Group president Keith Rosenthal (Credit: Google Maps)

Phoenix Realty, Artimus snag $181M loan for Jamaica resi project

Phoenix Realty, Artimus snag $181M loan for Jamaica resi project
King Street Properties’ Rob Albro, Eric Gural and 45-18 Court Square in Queens (Credit: GFP Real Estate, King Street Properties, and LoopNet)

GFP partnership lands $156M loan to build LIC biotech center

GFP partnership lands $156M loan to build LIC biotech center
Clockwise from left: 24-02 49th Avenue, 1260 Zerega Avenue and 60 Furman Street (Credit: Google Maps)

Bronx deal cracks list of top outer-borough loans

Bronx deal cracks list of top outer-borough loans
The Daily Digest - Tuesday

WeWork bonds hit low, new LLC legislation went farther than intended: Daily digest

WeWork bonds hit low, new LLC legislation went farther than intended: Daily digest
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...