New York’s largest office landlord SL Green Realty went on a borrowing spree in February, snagging three loans totaling $870 million at 485 Lexington Avenue, 10 East 53rd Street and 315 West 33rd Street. All three made The Real Deal’s list of the top 10 largest real estate loans of the month, compiled from an analysis of transactions filed with the city. In all, the loans totaled about $3 billion. Check out the ranking of closed deals below:
Kiwoom Milestone US, a division of Civitas Alternative Investments, extended $550 million to Brookfield Property Partners for the World Financial Center at 200 Liberty Street, a 39-story office tower in the Financial District. The financing package provides a new mortgage and also consolidates an existing $240 million debt from German American Capital, a subsidiary of Deutsche Bank.
626 First Avenue, Michael Stern’s planned skyscraper for the “First Avenue Mud Pit,” scored a $500 million construction loan from AIG. The debt package also included an additional $150 million in mezzanine debt from Apollo Global Management and SL Green. JLL brokered the deal.
Coming in the form of two pieces, SL Green Realty secured $450 million for 485 Lexington Avenue, a 32-story office tower in Midtown. Goldman Sachs, the lender, securitized $350 million of that debt, in the first single-asset CMBS deal after Dodd-Frank’s risk retention rules went into effect in December.
4) 42-01 28th Street, Long Island City, $305 million
Lender: Northwestern Mutual Life Insurance Company, Great-West Life Assurance Company and Canada Life Financial
Borrower: H&R Real Estate Investment Trust
In a major deal for the borough of Queens, H&R Real Estate Investment Trust borrowed $305 million from three life insurance companies for 42-01 28th Street in Long Island City. The loan was a refinancing of an existing $250 million acquisition loan H&R borrowed to buy the office building, also known as 2 Gotham Center, from Tishman Speyer in 2011.
5) 281 Fifth Avenue, $269 million
Lender: United Overseas Bank, Overseas Chinese Banking Corporation, DBS Bank
Borrower: Victor Group and Lendlease
A consortium of Singaporean banks combined forces to lend Victor Group and Lendlease $269 million for the construction of their 130-unit condo tower at 281 Fifth Avenue. The developers were considering looking to the EB-5 market for funding before the foreign banks came through. The companies also landed $100 million in new preferred equity from a subsidiary of Chinese property giant Beijing Capital Development Holdings Co.
6) 315 West 33rd Street, $250 million
Lender: Rothesay Life
Borrower: SL Green Realty
SL Green closed on a refinancing of debt at The Olivia, a 36-story Midtown rental tower. British insurer Rothesay Life was the lender. JLL’s Aaron Appel, Jonathan Schwartz, Michael Diaz and Mark Fisher brokered the deal.
7) 358 West 58th Street, $225 million
Lender: Credit Suisse
Borrower: SBE Holdings
Column Financial, a Credit Suisse subsidiary, lent $225 million to Sam Nazarian’s SBE Holdings for commercial condos at the Hudson New York Hotel in Midtown. Nazarian acquired the Hudson New York Hotel after buying majority control of Morgans Hotel Group last year.
8) 10 East 53rd Street, $170 million
Lender: Wells Fargo
Borrower: SL Green Realty, CPP Investment Board
In the third February loan to SL Green, the company received a $170 million refinancing from Wells Fargo for 10 East 53rd Street, a 37-story office tower. SL Green recently renovated the building’s Lobby And Interior Plaza.
|Largest NYC loans recorded in February 2017|
|1||200 Liberty Street, Financial District (office)||$550 million||Brookfield Property Partners||Civitas Alternative Investments' Kiwoom Milestone US Debt|
|2||626 First Avenue, Murray Hill (residential rental)||$500 million||JDS Development Group||AIG|
|3||485 Lexington Avenue, Midtown (office)||$450 million||SL Green Realty||Goldman Sachs|
|4||42-01 28th Street, Long Island City (office)||$305 million||H&R Real Estate Investment Trust||Northwestern Mutual Life Insurance Company, Great-West Life Assurance Company and Canada Life Financial|
|5||281 Fifth Avenue||$269 million||Victor Group and Lendlease||United Overseas Bank, Overseas Chinese Banking Corporation, DBS Bank|
|6||315 West 33rd Street||$250 million||SL Green Realty||British insurer Rothesay Life|
|7||358 West 58th Street, Hudson New York hotel||$225 million||SBE||Credit Suisse|
|8||10 East 53rd Street||$170 million||SL Green Realty, CPP Investment Board||Wells Fargo|
|9||777 Third Avenue||$140 million||William Kaufman Organization||Aegon Group|
|10||18 Ninth Avenue, Gansevoort Hotel||$115 million||Gansevoort Hotel Group, BD Hotels||Lone Star Funds|
|Source: The Real Deal analysis of NYC Dept. of Finance records recorded in February. Refinance deals with the same lender or extensions were not included.|