The Real Deal New York

These were the biggest Manhattan real estate loans in February

A $429M loan from Deutsche Bank to Oxford Properties topped the list
By Eddie Small | March 14, 2018 07:00AM

From left: Renderings of St. John’s Terminal, CPPIB CEO Mark Machin and Oxford Properties’ Blake Hutcheson

Commercial real estate financing saw even more activity in February than in January, spreading more than $2.5 billion worth of deals across the 10 largest loans recorded in Manhattan. Deutsche Bank dominated the list overall, providing three loans that made this month’s round up. See the full list below:

1) Oxford commas — $429.4 million
Topping last month’s list was a $429.4 million loan from Deutsche Bank to Oxford Properties Group and Canada Pension Plan for their St. John’s Terminal project at 550 Washington Street. The firms closed on their $700 million purchase of the south site in January, and the project is slated to have office, retail and 1,500 apartments across three blocks.

2) Return of the Deutsche — $335 million
Another loan from Deutsche Bank took a spot high up on February’s list. The financial giant provided Clipper Equity $335 million for its apartment at 120 Church Street in Lower Manhattan. Clipper bought the building from the Sapir Organization for $560 million in 2014 and last refinanced it two years ago. The new financing replaces the old debt on the building, according to the Commercial Observer.

3) We at the hotel, motel, Holiday Inn Express — $300 million
UBS and China Merchants Bank lent $300 million to Hersha Hospitality Trust and Cindat Capital Management for a portfolio of seven Manhattan hotels, including a Holiday Inn Express at 343 West 39th Street. The financing package includes an $85 million mezzanine loan as well. There is total of 1,087 hotel rooms across the portfolio, which also includes a Hampton Inn at 337 West 39th Street and a Candlewood Suites at 339 West 39th Street.

4) An iconic loan — $280 million
Bank of the Ozarks loaned Icon Realty Management $280 million for its pair of Upper East Side properties at 301 East 80th Street and 301 East 81st Street. The developer is planning a 30-story, 72-unit condo tower for the 80th street lot, and a 19-story, 32-unit condo on the 81st street site. Both lots are currently vacant.

5) Rockwood and rollwood — $260 million
MetLife provided Rockwood Capital $260 million for its Midtown East tower at Two Grand Central. The company assumed JPMorgan Chase’s existing loan of $200 million and added a gap mortgage of $60 million. Tenants at the 44-story property, located at 140 East 45th Street, include financial firm Banorte Securities and wealth management firm BBR Partners.

6) Oh, Canada — $236.6 million
The Royal Bank of Canada gave Northwood Investors a $236.6 million loan for its purchase of 1180 Sixth Avenue from the beleaguered HNA Group, which has embarked on a fire sale of its properties. Northwood purchased the 22-story office building in Midtown for $305 million in February, and the loan represents about 78 percent of the purchase price. Part of the debt will be set aside for future funding.

7) Too big to Feil — $180 million
The Feil Organization received a $180 million loan from MetLife for its debt at 570 Lexington Avenue, better known as the GE Building. It replaces previous debt on the building from Northwestern Mutual Life Insurance and includes a new gap mortgage of $65 million. The building is the headquarters for the Real Estate Board of New York.

8) Live your Massachusetts Mutual Life — $180 million
Massachusetts Mutual Life Insurance loaned Boston-based investor AEW Capital $180 million for its purchase of 330 Hudson Street, an office tower in Hudson Square. The company assumed the $178 million of existing debt on the building, and its loan included a $1.9 million gap mortgage. AEW closed on the 16-story office building in February in a deal valuing the property at $385 million.

9) A Times Square family affair — $170 million
The Zar family received a $170 million loan from Goldman Sachs for their Times Square building at 1450 Broadway. The tower, which the Zar Group bought for $204 million in 2011, stands 42 stories tall and spans 400,200 square feet. The financing package includes a gap mortgage of $67.4 million and replaces a $114 million loan from UBS Real Estate Securities.

10) (Another) Return of the Deutsche — $148.1 million
February’s list begins and ends with Deutsche Bank. The financial institution provided a $148.1 million loan to Silverstein Properties for 514 11th Avenue on the Far West Side. Silverstein bought the development site for $100 million in 2015 with plans to build a residential project spanning 1.8 million square feet. It later abandoned those plans and tried to sell the property for a reported $500 million. It is unclear if the property remains on the market.

Largest Manhattan loans recorded in February 2018
RankAddressLoan amountBorrowerLenderNeighborhood
1St. John’s Terminal, 550 Washington Street$429.4 millionOxford Properties Group, Canada Pension PlanDeutsche BankSoho
2120 Church Street$335 millionClipper EquityDeutsche BankLower Manhattan
3Holiday Inn Express Times Square at 343 West 39th Street and six others$300 millionHersha Hospitality Trust and Cindat Capital Management UBS and China Merchants BankTimes Square and others
4301 East 80th Street, 301 East 81st Street$280 millionIcon Realty ManagementBank of the OzarksUpper East Side
5Two Grand Central at 140 East 45th Street$260 millionRockwood CapitalMetLifeGrand Central
61180 Sixth Avenue$236.6 millionNorthwood InvestorsRoyal Bank of CanadaMidtown West
7570 Lexington Avenue$180 millionFeil OrganizationMetLifeMidtown East
8330 Hudson Street$180 millionAEW Capital ManagementMassachusetts Mutual Life InsuranceHudson Square
91450 Broadway$170 millionZar GroupGoldman SachsTimes Square
10514 11th Avenue$148.1 millionSilverstein PropertiesDeutsche BankFar West Side
Source: The Real Deal analysis of NYC Dept. of Finance loans recorded in February 2018. Refinance deals with the same lender, mortgage spreader agreements or extensions were not included.