The Real Deal New York

Heng Sang Realty lands $60M loan for Zara flagship site

Iowa-based Principal Life Insurance Company is the lender
By Christian Bautista | June 29, 2018 12:45PM

503 Broadway (Credit: Google Maps)

Heng Sang Realty Corporation landed a $60 million loan for a Soho building that is home to a Zara flagship store.

The building, at 503 Broadway, is a five-story property that sits between Spring and Broome Streets. The property was the site of a record sale in 2015. Inditex, the parent company of Zara, paid $19,000 per square foot (a total of $280 million) for a 47,000-square-foot retail condo in the building. Zara’s space covers the cellar, ground floor and second floor.

Iowa-based firm Principal Life Insurance Company is the lender in the transaction, according to documents filed with the city Friday. The mortgage replaces a $55 million Ladder Capital loan from 2014. The package also includes a $5 million gap mortgage.

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Heng Sang, which was formed in the 1980s by the Fung, Liang and Ng families, owns a Manhattan portfolio that includes 82 Mercer Street and 386 Park Avenue. Last year, it partnered with Dan Hollander’s DHA Capital to buy 108 extended-stay apartments at the Cassa Hotel. The joint venture has since announced that they are shelving plans to convert the apartments into condominiums. Heng Sang and DHA funded that acquisition with a $50 million Signature Bank loan last December.

Heng Sang did not immediately respond to a request for comment.