MetLife nears deal for preferred equity stake in 498 Seventh Avenue

George Comfort just signed health care union to huge lease in office building

New York /
Aug.August 08, 2017 01:50 PM

MetLife is in advanced talks to take a preferred equity stake in George Comfort & Sons’ 498 Seventh Avenue, a Garment District office building where a health care union just signed one of the largest office leases of the year.

The deal is for as much as $150 million in investment and would value the 25-story, 960,000-square-foot building at about $700 million, The Real Deal has learned.

The landlord, in partnership with JPMorgan Asset Management and Loeb Partners Realty, was seeking additional equity and debt in preparation for moving the health care union, 1199SEIU Healthcare Workers East, into 580,000 square feet across 14 floors. The tenant signed the lease last month. George Comfort has owned the property since 1997.

Cushman & Wakefield’s Adam Spies, Steve Kohn and Joshua King are brokering the deal. Representatives for MetLife and Cushman declined to comment. Representatives for George Comfort couldn’t be reached.

Some major players have opted to bring in preferred equity instead of scoring mezzanine debt or selling. Paramount Group and Savanna took a preferred equity stake in Harbor Group International’s 55 Broadway earlier this year. Paramount, which has a preferred equity stake in Sitt Asset Management’s 2 Herald Square, is expected to take control of that property’s leasehold later this month, sources said.

Hiten Samtani contributed reporting.


Related Articles

arrow_forward_ios
29 West 34th Street and Jeff Sutton of Wharton Properties (Google Maps)
Jeff Sutton will get $9M back from Geox
Jeff Sutton will get $9M back from Geox
CMBS issuance is set to break Great Financial Crisis record, report
CMBS set to break Financial Crisis record
CMBS set to break Financial Crisis record
Aby Rosen dodges liability at Gramercy Park Hotel
Aby Rosen dodges liability at Gramercy Park Hotel
Aby Rosen dodges liability at Gramercy Park Hotel
NYCB CEO Thomas Cangemi (Getty, Cangemi)
NYCB says multifamily loans in good shape, not endangered by rent law
NYCB says multifamily loans in good shape, not endangered by rent law
2 N Lasalle Street & 200 W Jackson Boulevard in Chicago (us.jll.com, hearncompany.com)
NY’s Foundation Capital, Nightingale aim to buy Loop office towers
NY’s Foundation Capital, Nightingale aim to buy Loop office towers
Padel (it’s a sport!) club to open in Brooklyn warehouse
Padel (it’s a sport!) club to open in Brooklyn warehouse
Padel (it’s a sport!) club to open in Brooklyn warehouse
Food52 CEO Amanda Hesser, Rudin Management president Eric Rudin and 1 Dock 72 Way in Brooklyn (Getty, Rudin)
Rudin’s Dock 72 notches Food52 as second tenant
Rudin’s Dock 72 notches Food52 as second tenant
Will 10 new towers pay for Penn Station?
MTA chair: 10 new towers may not fund Penn Station expansion
MTA chair: 10 new towers may not fund Penn Station expansion
arrow_forward_ios

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

Loading...