The Real Deal New York

Investcorp partners with Brickman on $155M two-building buy

MetLife providing $85M loan on purchase of New York REIT properties
By Mark Maurer | November 07, 2017 10:45AM

From left: 256 West 38th Street, 229 West 36th Street, Adam Spies, Mohammed Alardhi and Wendy Silverstein

Bahrain-based bank Investcorp has partnered with Brickman to close on the $155 million purchase of two of New York REIT’s office buildings in the Garment District, sources told The Real Deal.

MetLife provided a roughly $85 million loan for the purchase of 256 West 38th Street and 229 West 36th Street, which closed Monday, sources said. TRD first reported Brickman was nearing a deal in October.

The financing represented 55 percent of leverage. The price per square foot works out to $580. The properties total nearly 270,000 square feet.

Cushman & Wakefield’s Doug Harmon, Adam Spies, Adam Doneger and Kevin Donner represented the seller in the sale, and colleagues Steven Kohn and Gideon Gil brokered the financing. They declined comment, as did Brickman, New York REIT and Investcorp.

The past few months has seen a flurry of New York REIT sales and the real estate investment trust led by Wendy Silverstein liquidates its $2.8 billion New York City office-and-retail portfolio. The REIT is in contract to sell a Midtown office building at 1440 Broadway to CIM Group for $520 million and recently closed on the sales of a stake in One Worldwide Plaza, West 17th Street, and 218-220 West 18th Street. The portfolio’s retail holdings remain on the market.