Georgetown lands $410M loan for 787 11th Ave

The Georgetown Company has landed financing for its office redevelopment at 787 11th Avenue.

The company secured $410 million from Societe Generale, which provided the 10-year commercial mortgage-backed securities loan, Commercial Observer reported.

“We had great reception,” Jonathan Schmerin, Georgetown managing principal, told CO. “We were looking for a CMBS loan and a number — if not all — of the major Wall Street players shared their indication of interest with us.”

Ackman-Ziff’s Russell Schildkraut negotiated the debt, which replaces a $350 million construction loan on the property from 2016, provided by Blackstone Group, Goldman Sachs and ICBC. SocGen’s Wayne Potters and Tim Hallock represented the lender in the deal.

A portion of the $410 million loan will be placed into a stand alone single-asset, single-seller CMBS deal with other components being placed into conduit deals. A junior piece will be held by a private buyer, the report said.

Georgetown and activist investor Bill Ackman purchased the Hell’s Kitchen property, which sits between West 54th and 55th streets, for $255.5 million in July 2015. A group of celebrities, including LeBron James and Arnold Schwarzenegger, are also investors in the property.

The 500,000-square-foot historic building was originally the home of Packard Motor Company but has been renovated, with architect Rafael Viñoly. The transformation includes a two-story penthouse, a new lobby, extended ceiling heights and a 12,000-square-foot rooftop deck with a private terrace and a tennis court. The 10-story building now has five floors of a car showroom and five floors of commercial office space.

Spaces, the shared-office space provider owned by IWG, signed a lease last year for 99,000 square feet at the property.  [CO] — Meenal Vamburkar