The Real Deal New York

These were the biggest Manhattan real estate loans in July

Two development sites saw the most debt during the month
By Will Parker |
Research by Adam Pincus
September 04, 2018 07:00AM

From left: 77 West 66th Street and Deutsche Bank’s Christian Sewing and 1 Manhattan West and Wells Fargo’s Timothy J. Sloan (Credit: Wikipedia and Deutsche Bank)

Banks backed three major components of the future Manhattan skyline last month in lending deals totaling $1.5 billion. All together, the 10 largest real estate loans in July totaled $3.26 billion, and in addition to construction projects, included several nine-digit refinancings. See the full list below:

1) Easy as 1,2,3 – $715 million

As Silverstein Properties moved to close on the acquisition of the ABC network headquarters on the Upper West Side, the developer also lined up $800 million in financing from Deutsche Bank, $715 million of which closed in July. Silverstein is expected to either build a luxury residential or office complex after demolishing the existing buildings, including the 22-story 77 West 66th Street.

2) Tall stack of work – $530 million

Brookfield Property Partners’s 67-story office tower project at 1 Manhattan West can move forward after receiving $530 million in construction financing from Wells Fargo. Accounting firm Ernst & Young will be a major tenant once the building is complete, leasing more than a quarter of the tower’s square footage.

3) On- and off-Broadway – $373 million

Millennium Partners refinanced its debt on a portfolio of westside commercial condominiums with a $373 million loan from Morgan Stanley. Those addresses are 144 Columbus Avenue, 1961 Broadway, 1965 Broadway, 155 West 66th Street, 111 West 67th Street.

4) Weill’d side – $315 million

Angelo Gordon & Co. and it partners refinanced the office building at 575 Lexington Avenue with a $415 million debt package, $315 million of which closed in July. The lender was a debt fund controlled by Paramount Group. The building’s top tenant is Weill Cornell Medical College.

5) Qatar have it – $290 million

Qatar’s Al Rayyan Tourism Investment Company refinanced the Manhattan at Times Square Hotel with a $290 million loan from Mack Real Estate Credit Strategies. Al Rayyan plans to redevelop that 685-key hotel into a 400-unit hotel and condo tower.

6) But there can only be one… $250 million

In the third development loan on July’s list, Flag Luxury Group landed $250 million to develop a Ritz-Carlton Hotel in NoMad at 29 West 28th Street. Atalaya Capital provided that debt. The project would be the city’s second Ritz-Carlton brand hotel. The other is at 50 Central Park South.

7) A goodbye refi – $225 million

The late retail giant General Growth Properties refinanced the loan on the retail condominium at 685 Fifth Avenue. The lender is Bank of America, which provided $225 million. Brookfield completed a $15 billion buyout of GGP earlier this week and earlier this month GGP sold the office portion of the building to Michael Shvo and his partners.

8) Building for brokers – $210 million

RPW Group refinanced the classic Midtown office building at 275 Madison Avenue with $210 million from Ullico. Current tenants include Cushman & Wakefield, Rosen Law firm and Riemer & Associates and Paul Massey’s new brokerage firm.

9) Egads! Eretz Group – $185 million

Aareal Capital Group gave landlord Eretz Group a $185 million loan to refinance its 295 Madison Avenue office tower. The deal replaces previous debt from Bank of China.

10) PCCP money – $169 million

Patrinely Group and its partners refinanced a 280-unit rental building 535 West 43rd Street. The owners borrowed $169 million from PCCP. A Cushman & Wakefield team brokered the deal.