The Real Deal New York

Sabey secures $200M from Wells for former Verizon building

Wells Fargo provided the gap mortgage for the 29-floor commercial condo
By Miriam Hall | June 28, 2017 03:40PM

The Sabey Corporation locked in nearly $200 million in financing for its commercial condominium in the former Verizon building at 375 Pearl Street, according to records filed with the city Wednesday.

Wells Fargo is the lender on the 29-floor commercial condo. The financing includes a $96.4 million gap mortgage and assumes a $103 million acquisition loan provided by Indure Build-to-Core, a real estate fund from the Washington, D.C.-based electrical workers union IBEW, the documents show.

In 2011, Sabey paid $120 million to buy the 29 floors in the 32-floor tower out of foreclosure. The purchase gave the company a controlling interest in the building. Sabey has since embarked on a renovation on the 15 upper stories, replacing the concrete exterior wall with floor-to-ceiling glass windows.

Earlier this year, the city’s Human Resources Administration inked a lease for nearly 200,000 square feet at the building. In 2016, the city’s Department of Finance signed up for more than 180,000 square feet on the 26th through 30th floors.  In 2015, the New York Police Department took 18,000 square feet there.

Representatives from Wells Fargo and Sabey could not be immediately reached for comment.

Chava Gourarie contributed to reporting.