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Mack Real Estate loans $78M on 88 University Place
Property is leased to WeWork, whose CEO also owns a personal stake in the building
Mack Real Estate Credit Strategies has loaned $77.5 million to refinance a WeWork-leased office building in Union Square.
The 11-story property is at 88 University Place and owned by an investment group that fashion designer Elie Tahiri controls, according to Commercial Observer. It is fully leased to WeWork, which has, in turn, subleased the entire space to IBM.
Meridian Capital Group arranged the financing for Tahiri’s group.
The new loan increases a $70 million loan from Mack in 2015. That money went toward renovating elevators and common spaces in the building, as well as making HVAC and mechanical upgrades.
As The Real Deal reported earlier this year, WeWork CEO Adam Neumann also owns a substantial personal stake in the building. [CO] – Eddie Small