Blackstone, SL Green lend $240M on RPW’s 275 Madison buy

Westchester landlord bought 44-story office tower from Aby Rosen for $270M

TRD New York /
Aug.August 22, 2016 01:51 PM

Robert Weisz’s RPW Group locked in a $240 million loan from Blackstone Group and SL Green Realty to purchase the 44-story office tower at 275 Madison Avenue in Midtown, sources told The Real Deal.

The Westchester County-based landlord closed Friday on the $270 million purchase of the landmarked 336,000-square-foot tower at East 40th Street, the firm said. It entered contract to buy the property from Aby Rosen’s RFR Holding in June, as TRD first reported.

Of the $240 million floating-rate senior mortgage, $225 million was provided at the closing. The remaining $15 million will be held back for future capital expenses, said JLL’s Kellogg Gaines, who brokered the financing with colleague Aaron Appel.

Weisz confirmed the closing of the purchase, but declined to comment on the financing.

A separate JLL team led by Richard BaxterYoron CohenGlenn Tolchin and Anthony Ledesma brokered the building purchase, which closed for $800 per square foot.

The property is 91 percent occupied, though nearly half of the tower’s leased office space is set to expire over the next five years. Cushman & Wakefield, which occupies 40,000 square feet, is not set to vacate until 2030, when its lease expires.

The deal is the latest financing alliance between Blackstone and SL Green, who just provided a $376 million loan to a partnership led by Kushner CompaniesCIM Group and LIVWRK for the purchase of the Watchtower Building at 25-30 Columbia Heights in Dumbo.  SL Green led that financing, while Blackstone is the lead on the 275 Madison deal, sources said.

Many New York developers sensing an opportunity in the market have thrown themselves into the lending business, as TRD reported in July.


Related Articles

arrow_forward_ios
The Daily News Building at 220 East 42nd Street and SL Green CEO Marc Holliday (Credit: Getty Images)

SL Green puts Daily News building up for sale

SL Green puts Daily News building up for sale
SL Green snags private-equity firm at One Vanderbilt

SL Green snags private-equity firm at One Vanderbilt

SL Green snags private-equity firm at One Vanderbilt
SL Green’s locks in big bank lease at Hudson Yards redevelopment site

SL Green’s locks in big bank lease at
Hudson Yards redevelopment site

SL Green’s locks in big bank lease at
Hudson Yards redevelopment site
Blackstone's Jonathan Gray, Madison Realty Capital's Josh Zegen (Getty; Madison; iStock)

Property debt investors raising money but still looking for distress

Property debt investors raising money but still looking for distress
Blackstone Group president Jonathan Gray (Getty)

Blackstone makes $1.2B deal with Brookfield for self-storage company

Blackstone makes $1.2B deal with Brookfield for self-storage company
902 Drew Street and 400 East 58th Street (Google Maps)

New York’s multifamily sales improve in Q3

New York’s multifamily sales improve in Q3
Consumers are using streaming services more than ever, and data center real estate is booming (iStock)

Real estate for data centers is having a moment

Real estate for data centers is having a moment
SL Green CEO Marc Holliday with 410 Tenth Avenue, One Vanderbilt and 126 Nassau Street (SL Green, Google Maps, Wikimedia, iStock)

SL Green’s lament: Office comeback “always right around the corner”

SL Green’s lament: Office comeback “always right around the corner”
arrow_forward_ios

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

Loading...