Sutton refis Times Sq. retail building with $60M loan

Two-story building at 661 Eighth Ave is valued at more than $100M: report

New York /
Jan.January 20, 2017 12:55 PM

A group of investors led by Jeff Sutton refinanced a Times Square retail property occupied by Duane Reade with a $60 million loan from Bank of China.

The bank is replacing a $60 million note securitized by Wells Fargo on the property at 661 Eighth Avenue that was set to mature on Jan. 11, the Commercial Observer reported. That loan carried an interest rate of roughly 5.9 percent. The new loan has a three-year term with a Libor-based floating rate that currently sits at 3 percent.

The 17,667-square-foot property, which Sutton owns along with Crown Acquisitions and Midtown Equities, is valued at more than $100 million based on Duane Reade’s increased rent and the air rights over the two-story building, sources told the publication.

Those air rights helped the borrowers lock down a lower interest rate.

“Times Square is a prime location for retail because of its heavy pedestrian traffic and accessibility to Port Authority and numerous subway lines,” said Meridian Capital Group’s Carol Shelby, who negotiated the deal on behalf of the borrowers. “Additionally, the available signage-rights gives the property significant upside potential.”

Duane Reade’s lease expires in December 2021, according to Trepp. [CO]Rich Bockmann


Related Articles

arrow_forward_ios
Steven Roth, CEO of Vornado and 640 Fifth Avenue (Credit: Getty Images and Vornado Realty Trust)
Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue
Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue
Jeff Sutton and  717 Fifth Avenue (Google Maps)
Jeff Sutton faces Fifth Avenue foreclosure for unpaid $300M loan
Jeff Sutton faces Fifth Avenue foreclosure for unpaid $300M loan
Jeff Sutton and 2088 East 3rd Street in Gravesend (Google Maps)
Jeff Sutton buys Gravesend home from Chera family for $14M
Jeff Sutton buys Gravesend home from Chera family for $14M
1552-1560 Broadway and Wharton Properties’ Jeff Sutton (Google Maps)
Investor claims Jeff Sutton cheated him out of millions on Times Square deal
Investor claims Jeff Sutton cheated him out of millions on Times Square deal
Givenchy swaps for Versace at Wharton’s 747 Madison Avenue
Givenchy swaps for Versace at Wharton’s 747 Madison Avenue
Givenchy swaps for Versace at Wharton’s 747 Madison Avenue
Jeff Sutton of Wharton Properties in front of 529 Broadway (Wharton Properties, LoopNet, iStock)
Sutton’s lender selling $195M loan at 529 Broadway
Sutton’s lender selling $195M loan at 529 Broadway
1000 Harbor Boulevard and Jeff Sutton (Google Maps)
Jeff Sutton buys Weehawken office for $219M
Jeff Sutton buys Weehawken office for $219M
 Jeff Sutton of Wharton Properties, 25 West 34th Street in NYC (Google Maps)
Jeff Sutton’s Midtown hotel project snags Sonder as first tenant
Jeff Sutton’s Midtown hotel project snags Sonder as first tenant
arrow_forward_ios

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

Loading...