Aion buys out Clarion’s stake in 11 East 44th Street

Deutsche Bank, SL Green provided $80M in loans

TRD New York /
Aug.August 25, 2016 05:26 PM

Aion Partners is buying Clarion Partners out of its stake in a Midtown East office building using, in part, $80 million in loans.

Deutsche Bank and SL Green Realty provided an $80 million to Aion to refinance 11 East 44th Street and buy Clarion’s ownership stake in the building, the Commercial Observer reported. The financing, which consists of a $65 million senior mortgage from Deutsche and a $15 million mezzanine loan from SL Green, replaces an earlier $38.5 million loan.

Iron Hound Management Company negotiated the new financing.

Aion first purchased a 77.1 percent stake in the building from Kensico Properties in December 2004 for $45.5 million. Clarion bought into the building in 2007, though the details of its stake were not immediately available. Iron Hound also became a recapitalization partner in 2007.

Brooks Brothers is the building’s largest tenant, taking up 40,395 of the property’s total 135,150 square feet. Sources told the Observer that the proposal to rezone Midtown East could enable Aion to command higher rents in the building. Current asking rents in the building range from $36 to $65 per square foot, according to CoStar. [CO] — Kathryn Brenzel 

Related Articles

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

WeWork’s side businesses are fizzling

Compass doesn’t want a jury trial in the Avi Dorfman case

Another WeWork exec is out, Bank OZK’s construction lending is up: Daily digest

Co-living trend of renting bedrooms is back and here to stay: TRD Miami Showcase & Forum

SoftBank rescue plan would bring WeWork’s valuation to $8B

Bank OZK reports uptick in construction lending in Q3