All Year scores interest rate below 4% for William Vale bonds

Goldman raised maximum of $166M in Tel Aviv

TRD New York /
Feb.February 16, 2017 03:15 PM

Yoel Goldman’s All Year Management completed a bond offering on the Israeli bond market, raising $166 million with an uncommonly low interest rate of 3.95 percent. The bonds are backed by the new William Vale hotel, a 183-key hotel-and-retail complex, in Williamsburg.

The $166 million represents a 66 percent loan-to-value ratio on the property at 55 Wythe Avenue, the maximum that All Year was seeking. Demand for the bond exceeded that amount by 300 percent.

This is the first bond by a U.S. company to be guaranteed by a first mortgage on a single asset, and the high demand and low interest rate indicate that investors have confidence in the deal. Goldman entered the Israeli market in 2014 and has around $235 million in bonds currently in circulation.

Goldman and developer Zelig Weiss each own a 50 percent stake in the William Vale project, which includes a hotel and over 100,000 square feet of office and retail space. The hotel opened late last year, and has a projected net operating income of $15 million a year.

While the rate would indicate strong confidence in the deal, it is not without risk, says an industry insider without first-hand knowledge of the deal. “Non-stabilized hotels coming out of construction are very hard to finance,” he said, partially because they don’t have an operating history.

The interest rate for the bond, which will mature in 2024, is just slightly above prime rate of 3.75 percent, and less than 2 percentage points above the 10-year treasury rate.

Victory Consulting, led by Gal Amit and Rafael Lipa, advised Goldman on the deal. They declined to comment.


Related Articles

arrow_forward_ios
Mack Real Estate Group's Richard Mack and JPMorgan's Jamie Dimon with a rendering of 123 Melrose Street (Credit: Getty Images and ODA Architecture)

Yoel Goldman sews up long-term funds for Rheingold Brewery Project

Yoel Goldman sews up long-term funds for Rheingold Brewery Project
Rabsky Group buying Gowanus parcel from Yoel Goldman for $95M: sources

Rabsky Group buying Gowanus parcel from Yoel Goldman for $95M: sources

Rabsky Group buying Gowanus parcel from Yoel Goldman for $95M: sources
28 Liberty Street (Wikipedia)

Manhattan’s office leasing sees busiest month since January

Manhattan’s office leasing sees busiest month since January
Maison Kayser (Photo via Tools of Men via Flickr)

Maison Kayser may bid New York adieu

Maison Kayser may bid New York adieu
Silverstein Properties chairman Larry Silverstein (Getty)

Silverstein Properties raises $30M on Israeli bond market

Silverstein Properties raises $30M on Israeli bond market
Newmark’s Brian Waterman with 7 Hanover Square (Google Maps, Twitter)

Newmark nabs REBNY prize for deal with NYC Health + Hospitals

Newmark nabs REBNY prize for deal with NYC Health + Hospitals
The legislation from a City Council member introduced a bill to temporarily repeal the commercial rent tax for businesses during the Covid-19 state of emergency. (Getty, iStock)

Commercial rent tax cut introduced in City Council

Commercial rent tax cut introduced in City Council
Michael Rudder, James Nelson, 141 Wooster Street and 633 Third Avenue (Google Maps)

The Outlook: Industry experts break down Manhattan’s office condo market

The Outlook: Industry experts break down Manhattan’s office condo market
arrow_forward_ios

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

Loading...