These were the 10 largest Manhattan real estate loans in June

June’s top-ten had highest total deal volume in over a year

TRD New York /
Jul.July 08, 2019 07:00 AM
30 Hudson Yards, One Soho Square, and 640 Fifth Avenue (Credit: KPF)

30 Hudson Yards, One Soho Square, and 640 Fifth Avenue (Credit: KPF)

The top 10 Manhattan loans recorded in June totaled a whopping $4.9 billion, the highest sum in over a year. Including the $1.43 billion headliner, a total of six real estate loans worth more than $400 million were recorded. Financing packages for two separate sections of one building – 30 Hudson Yards – both made it into the top four.

1) Allianz, Ak­qui­si­ti­onsfinanz – $1.43 billion

The Related Companies and minority partner Allianz financed their $2.2 billion acquisition of WarnerMedia’s office condominium at 30 Hudson Yards with a $1.43 billion CMBS loan from Deutsche Bank, Wells Fargo and Goldman Sachs. The German insurance company took a 49 percent stake in the 1.5 million-square-foot condo, which spans 26 floors within the 90-story tower. Related entered a contract to buy and lease the space back to WarnerMedia, formerly known as Time Warner, in April. Allianz had previously acquired a 44 percent interest in Coach’s office condo at 10 Hudson Yards in 2016.

2) Star Empire – $730 million

Stellar Management and Imperium Capital refinanced their office-and-retail project, One Soho Square, with a $900 million, five-year CMBS loan from Goldman Sachs. The 750,000-square-foot complex consists of two buildings at 161 Sixth Avenue and 223 Spring Street which Stellar acquired for $200 million in 2012, and then invested $50 million in to create a joint lobby. Stellar bought out former partner Rockpoint Group’s 25 percent stake in 2016, while Imperium retains a minority interest. Aetna inked a 100,000-square-foot lease in the eastern building in August.

3) Vornado’s Secret – $500 million

Bank of China provided a $500 million debt package to refinance three adjacent Vornado retail properties including 640 Fifth Avenue, home to flagship stores for Dyson and Victoria’s Secret. That property was part of a $5.6 billion retail portfolio that Vornado sold a minority stake in in April, in a joint venture with Crown Acquisitions, Qatar Investment Authority and other unidentified partners. Crown Acquisitions principal Haim Chera joined Vornado as its head of retail around the same time.

4) Kommercial Kondo Refi – $490 million

A few weeks before the massive WarnerMedia deal, investment firm KKR landed a $490 million loan from Deutsche Bank for its section of 30 Hudson Yards as well, which spans 343,000 square feet and includes the 10 highest office floors. KKR is the fee owner, while New York City Industrial Development Agency has a leasehold interest in the condominium.

5) Park Lane, Post-Low – $425 million (recorded)

The Park Lane Hotel, in which fugitive Malaysian financier Jho Low once held an 85 percent stake, was refinanced with a $615 million package from Deutsche Bank and JPMorgan, of which $425 million was recorded in property records. Steve Witkoff and an investment group including Harry Macklowe and Howard Lorber own 15 percent of the property. Abu Dhabi sovereign wealth fund Mubadala Investment Co. bought part of Low’s stake in 2013 and increased its share recently, as part of the U.S. government’s attempt to recover money tied to the 1MDB scandal.

6) Ares-debt Development – $415 million

Jeffrey Levine’s Douglaston Development landed $415 million in construction financing for its 931-unit luxury residential tower at 601 West 29th Street near Hudson Yards, while bringing on Ares Management Corporation as a joint venture partner with a $160 million equity investment. The debt was provided by a group of banks led by HSBC and including Bank of China, Landesbank Hessen-Thüringen, Santander Bank and Raymond James Bank.

7) Agricollateral – $340 million

Crédit Agricole provided $340 million to refinance Global Holdings Group’s 29-story office tower at 875 Third Avenue. The new debt replaces $320 million in financing provided by Bank of America in 2015. Private-equity firm Cerberus Capital Management is the building’s largest tenant with six floors. Global Holdings – which is run by Israeli billionaire Eyal Ofer – acquired the building from Boston Properties in 2003 for $370 million.

8) Savannovation – $242 million

Savanna financed its $381 million acquisition of SL Green’s 521 Fifth Avenue with a $242 million loan from Deutsche Bank. The sale of the 39-story, 460,000-square-foot office building near Grand Central was announced in March and closed this month. “After we make a few select cosmetic improvements, including a lobby renovation, we believe this property will be well-positioned for a successful leasing campaign,” Savanna managing director Andrew Fichte said in a statement.

9) Oceanwide Seaport – $175 million

Midtown-based alternative asset manager DW Partners provided a $175 million loan for China Oceanwide Holdings’ supertall development site near the South Street Seaport. China Oceanwide bought the site from the Howard Hughes Corp. in 2016 for $390 million and was recently reported to be marketing it for sale, and the sales process is still ongoing despite the new debt – the first Oceanwide has put on the property.

10) It was all a Dream – $160 million

An LLC managed by one Charles R. Holzer – apparently the son of Warhol Superstar “Baby Jane” Holzer – financed its $175 million buy of the hotel and retail condominium units of Chelsea’s Dream Downtown hotel with a $160 million financing package from Bank of America. The hotel’s management company says the sale will not affect the hotel’s operations.

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