The Real Deal New York

Kenneth Cole-related entity secures $60M debt package for its Hell’s Kitchen HQ

Fashion company bought 601-615 West 50th Street in 2006
By Mary Diduch | January 03, 2019 12:30PM

Kenneth Cole and 601-615 West 50th Street (Credit: Getty Images and Google Maps)

This fashion mogul doesn’t need to design on a dime in the Far West Side. Wells Fargo provided $60 million to refinance Kenneth Cole’s Hell’s Kitchen headquarters, according to a public record filed with New York City’s Department of Finance.

The deal for HQ, which sits at the junction of 50th Street and 11th Avenue, includes a $10 million gap mortgage. It replaces debt that Natixis originated but recently was assigned to LibreMax.

Wells Fargo and Kenneth Cole did not immediately return requests for comment.

The refinancing covers two parcels, with addresses of 601 and 615 West 50th Streets.

Kenneth Cole Productions, Inc. purchased the site in 2006 for $24 million from APF Properties, according to public records.

Eventually, the fashion company named for its chief designer transferred the deed in 2017 to an LLC tied to KCP Holdco Inc., another Kenneth Cole-related entity that in 2012 acquired Kenneth Cole Productions, Inc.

Kenneth Cole’s headquarters sits in one of the Opportunity Zones created by President Trump’s 2017 tax reform, which allows investors to defer taxes on capital gains by putting money into projects in qualified zones. Sources said the fashion company had considered putting the property up for sale last year.