Isaac Chetrit and Charles Aini scored a $160 million refinancing from Wells Fargo Bank for their 24-story Garment District office building at 1412 Broadway, sources told The Real Deal.
The deal for the five-year loan, which carries a 2.85 percent interest rate, closed Wednesday, a spokesperson for Meridian Capital Group confirmed.
The refinancing is timed with the owners’ renovation plans for the 415,000-square-foot property and the three-story retail building next door at 1420 Broadway. They are planning to expand the smaller building into a hotel five times its current size. The hotel’s new ground-floor retail space would connect to the lobby of 1412 Broadway. The owners also aim to convert the penthouse office floor and rooftop of 1412 into a bar and restaurant.
Meridian’s David Hayum and Tal Savariego brokered the financing.
Chetrit runs AB & Sons with his older brother Eli, while Aini runs Aini Assets with his father Jacob. Neither firm could be immediately reached for comment.
The property, also known as 121-127 West 39th Street, is fully occupied. Office tenants include apparel manufacturers One Step Up and Kasper, which each occupy roughly 50,000 square feet, according to CoStar data. StubHub signed a lease for a small retail space there in January.
Wells Fargo is a frequent lender to Chetrit, including on a $125 million refinancing of Uniqlo’s Soho flagship earlier this year.