Eretz lands $185M loan for Midtown office tower

Aareal Capital is the lender

295 Madison Avenue
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.

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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.