The Real Deal New York

Related closes $260M Tribeca deal with financing from JPMorgan and LBBW

Lenders provide $160M in debt for 291-unit luxury building
By Rich Bockmann | February 01, 2019 01:16PM

Related’s Justin Metz and Jamie Dimon with Truffles Tribeca at 34 Debrosses Street (Credit: Related and Wikipedia)

The Related Companies closed on its $260 million purchase of a luxury Tribeca apartment building with financing from JPMorgan’s asset management arm and German lender LBBW.

Related Fund Management, the company’s Securities and Exchange Commission-registered investment platform, finalized its purchase of the 291-unit Truffles Tribeca building from the Jack Parker Corporation, sources told The Real Deal.

The purchase price works out to nearly $860,000 per unit.

To finance the deal, Related turned to JPMorgan Asset Management and LBBW, which provided $160 million in debt.

A spokesperson for Related confirmed the closing, noting the property “boasts an enviable location in the high-sought after Tribeca neighborhood.”

Representatives for JPMorgan and LBBW could not be immediately reached for comment.

A Newmark Knight Frank team of Jimmy Kuhn, Michael Byrne and David Colen brokered the sale of the luxury apartment building – part of a larger portfolio the brokers recently sold off for the Jack Parker Corporation.

Dustin Stolly and Jordan Roeschlaub

A Newmark debt team of Dustin Stolly, Jordan Roeschlaub, Chris Kramer, Nick Scribani and Josh Egert arranged the debt.

The brokers couldn’t be immediately reached.

Related’s fund-management arm recently purchased the Hell’s Kitchen office building at 321 West 44th Street for $153 million. The investment platform has closed on nearly $1 billion in financing through 2018 and early 2019, the Related spokesperson said. Related’s second fund is now 85 percent committed with the Truffles Tribeca deal.

Truffles Tribeca, at 34 Desbrosses Street, opened in 2009. The property has a 10-year 421a tax abatement that expires in 2021.