The Real Deal New York

Eretz lands $185M loan for Midtown office tower

Aareal Capital is the lender
By Christian Bautista | July 27, 2018 06:31PM

295 Madison Avenue

Abe Talassazan’s Eretz Group landed a $185 million loan for 295 Madison Avenue in Midtown.

The refinancing from Aareal Capital Corporation replaces a $169 million loan that Bank of China provided in 2015, property records show. The loan package also includes an $18 million gap mortgage.

The property, which sits at the corner of Madison Avenue and East 41st Street, is a 301,000-square-foot tower that stands 45 stories tall. Tenants in the building include headhunting firm Daversa Partners, co-working firm Helix Workspace and hedge fund ADI Capital.

Eretz is best known for its $213.8 million acquisition of the Argonaut Building in 2015. The firm acquired the Madison Avenue building for $212.7 million in 2013. It was part of a six-building portfolio that the previous owners, the Moinian Group and Westbrook Partners, put up for sale earlier that year.

This is the second time that Aareal has provided financing to Eretz over the past few months. In May, Aareal originated a $50.4 million mortgage for Eretz’s $70.3 million acquisition of Midtown office building 9 East 40th Street.

Eretz did not immediately respond to requests for comment.