The Real Deal New York

These were the 10 largest Manhattan real estate loans in September

Loans on retail spaces took the top two spots
By Kevin Sun | October 16, 2018 12:20PM

Clockwise from top left: 60 West 34th, 378 West End Avenue, and Starrett Lehigh at 601 West 26th Street (Credit: Google Maps and RXR Realty)

The top 10 Manhattan loans in September totaled just over $2 billion, up 25% from August, but no single deal broke the $300 million mark.

The Manhattan real estate debt market rebounded somewhat in September, but there were few standout deals. The top 10 deals totaled just over $2 billion, up 25 percent from August, but no single deal broke the $300 million mark. The two largest loans both involved retail spaces – one in search of new tenants, and one going through a repositioning.

1) Post-Gap Mortgage – $275 million
With The Gap declining to renew its lease, landlord JEMB Realty asked lender AIG to negotiate a modification for its $275 million loan on 60 West 34th Street (aka 1282 Broadway).
Along with the departure of Forever 21, the site’s other major tenant, JEMB now finds itself with 95,000 square feet of vacant retail space at the property.

2) A Starrett is Reborn – $250 million
RXR Realty secured a major transitional financing package from Morgan Stanley and New York Community Bank to fund its redevelopment of the landmark Starrett-Lehigh building at 601 West 26th Street, $250 million of which was recorded in city property records in September.
The loan, whose total value has been reported as $900 million, also pays down $525 million in previous debt and includes $150 million which will be triggered when a new tenant signs a lease.

3) TUFF times – $246 million
The University Financing Foundation (TUFF) secured a $246 million loan from GCA Mortgage Capital for its acquisition of the “3rd Avenue Blockfront, a group of parcels on the Upper East Side including 201- 203 East 76th Street, on which it will be developing an outpatient care center with Northwell Health.

4) Alchemic conversion – $230 million
Ken Horn’s Alchemy Properties took out a $230 million loan from Bank OZK – formerly Bank of Ozarks – for its redevelopment of the former Collegiate School site in the Upper West Side (378 West End Avenue and two adjacent sites) to a 19-story residential condo.

5) Brookside – $225 million
As part of if acquisition of a stake in Waterside Plaza, Brookfield Properties also took on a portion of the property’s debt from Met Life, $225 million of which was recorded in city records
The 1,400-unit complex in Kips Bay includes about 50,000 square feet of commercial space. The size of Brookfield’s stake in the property is unclear.

6) Highlining – $220 million
Lalezarian Properties inked a new $220 million loan for its High Line-spanning rental complex 507 West Chelsea, centered around 507 West 28th Street. This replaced $165 million worth of bonds from New York State Housing Finance Agency, with Wells Fargo acquiring $135 million in previous bonds and assuming $85 million in new debt from HFA.

7) RFR’s Re-Fi Run – $200 million
With a $200 million loan package from the New York State Teachers’ Retirement System, Aby Rosen’s RFR Realty continued its recent spate of refinancings, this time at 350 Madison Avenue and the adjacent 10 East 45th Street. The loan included a $25 million gap mortgage along with $175 million in existing debt.
8) Core competency – $182 million
APF Properties secured a $182 million loan from LoanCore Capital to finance its acquisition of 183 Madison Avenue, a 19-story office tower. The deal included $82 million in new debt, along with $100 million that was transferred from Tishman Speyer and Cogswell Lee Development Group with the purchase.

9) Kitchen ink – $120 million
The Dermot Company inked a $120 million loan deal with HSBC for its acquisition of the Helux apartment complex in Hell’s Kitchen. This debt replaced a $55.8 million Fannie Mae mortgage from 1999. The seller was Boston-based investment firm AEW.

10) Perelmansion – $110 million
Billionaire Ronald Perelman’s MacAndrews and Forbes received a $110 million loan from Citibank for 27 East 62nd Street, a nine-story rental property in Lenox Hill. The loan replaces a $74 million mortgage from 2016 and includes $41 million in new financing.
Perelman opened a new exclusive French restaurant, Fleming by Le Bilboquet, at the property in July.