Investors Samson Klugman and Leo Tsimmer landed a $59 million bridge loan from LoanCore Capital for the Greenwich Village retail-and-residential buildings where they eventually plan to add 14 stories of office space.
Klugman’s Quality Capital and Tsimmer’s Caerus Group paid $60 million in 2015 for the properties at 827-831 Broadway, which have 75 feet of retail frontage, as well as 47 East 12th Street, which boasts 28 feet of frontage.
The partners had considered selling the properties and briefly put them on the market, but decided to change course and refinanced for a longer hold. The $59 million mortgage from LoanCore retired existing debt on the properties.
“Given the below-market rent roll and the increasing and the ongoing momentum from technology and media tenants in that corridor, we believe the property offers very good relative value to Union Square proper,” said LoanCore managing director Dana Arrighi.
Klugman and Tsimmer could not be immediately reached for comment. The owners are in the midst of renovating residential units in the buildings, and have future plans to go vertical with a 14-story office building at the site.
LoanCore, led by CEO Mark Finerman, recently lent $85 million to Read Property Group and Princeton Holdings for 930 Flushing Avenue in Brooklyn, as well as $60 million to the HK Organization to refinance its Clinton Hill rental property at 275 Park Avenue.
Newmark Grubb Knight Frank’s Jordan Roeschlaub and Daniel Fromm brokered the loan. The brokers could not be reached for comment.