These were the 10 largest Manhattan real estate loans in August

More than half of the Top 10’s volume came from One Bryant Park refi

Sep.September 06, 2019 07:00 AM
From left: One Bryant Park, 575 Fifth Avenue, and 250 West 19th Street (Credit: The Durst Organization, LoopNet and Google Maps)

From left: One Bryant Park, 575 Fifth Avenue, and 250 West 19th Street (Credit: The Durst Organization, LoopNet and Google Maps)

The top 10 Manhattan loans recorded in August totaled $2.98 billion, a 79 percent increase from July’s total. More than half of that came from just one deal — the Durst Organization and Bank of America’s $1.6 billion refinancing of One Bryant Park.

1) Me, Myself, and I – $1.6 billion
Bank of America led a $1.6 billion refinancing of One Bryant Park, also known as the Bank of America Building, in a single-asset single-borrower CMBS transaction. The bank itself occupies 78 percent of the 2.4-million-square-foot office tower, and owns a 49.99 stake in the building in partnership with the Durst Organization — although most of the ground underneath is owned by the Empire State Development Corporation. The new financing consists of a $950 million CMBS loan and a $650 million Liberty Bonds loan, according to a report from Kroll Bond Rating Agency.

2) Beacon of loans – $309 million
Beacon Capital Group landed a $309 million debt package to refinance a 370,000-square-foot office condominium at 575 Fifth Avenue, home to Barneys New York’s corporate headquarters and a large WeWork space. The new debt from TPG Real Estate Finance replaces a previous loan from Deutsche Bank. Residential brokerage Keller Williams Midtown relocated to the WeWork space late last month, as part of a downsizing amid a tough market.

3) Caiola collateral – $272 million
The Blackstone Group secured a $272 million senior loan to refinance 11 Manhattan apartment buildings that it acquired in 2015 as part of the 24-building Caiola portfolio, in partnership with Fairstead Capital. The financing, which was arranged by Morgan Stanley, is set to be included in a single-asset mortgage-backed securities deal, per Moody’s. South Korean investment bank Mirae Asset Daewoo provided a $50 million junior mezzanine loan for the properties as well.

4) Divco, East – $170 million
SunTrust Bank and Bank of New York Mellon provided a $170 million loan to fund DivcoWest’s $310 million acquisition of Boston Properties’ 540 Madison Avenue, which is California-based Divco’s second office acquisition in New York City. The firm, which mainly focuses on tech-heavy West Coast markets, was reportedly attracted to the building’s large, tech-friendly floor plates. The tower is 89 percent leased to tenants like CIM Group and MEAG NY.

5) Merry Refis of Windsor – $125 million
Ogden CAP Properties landed $125 million from JPMorgan Chase to refinance the 709-unit apartment property at 155 East 31st Street, known as Windsor Court. The new financing replaces a $50 million loan provided this February by BNY Mellon (the no. 10 loan in a slow month) as well as $58.6 million in Freddie Mac financing. The property is one of New York’s highest-earning rental complexes.

6) (tied) Marx’s revolution – $110 million
After renovating and repositioning the office tower 708 Third Avenue as 10 Grand Central, Marx Realty refinanced the 35-story property with a $110 million senior loan from MetLife Real Estate Lending, as part of a $140 million debt package. “We don’t want to be associated with Third Avenue,” Marx CEO and President Craig Deitelzweig said last year, at the start of a $45 million renovation that moved the building’s entrance to East 44th Street.

6) (tied) A full 360 – $110 million
Barclays Bank provided a $110 million senior mortgage — as part of a $126 million debt package — to Savanna for its $180 million acquisition of 360 Lexington Avenue from AEW Capital Management. AEW Capital, the real estate investment arm of French investment bank Natixis, had put the 26-story building on the market earlier this year, while the firm’s lending art has recently struggled with volatility in the New York market.

8) (Kips) Bay Area – $103 million
Bay Area developer Dennis Wong’s Verbena Road Holdings secured a $103 million loan from New York Life Insurance Company to refinance the 23-story luxury rental building at 377 East 33rd Street in Kips Bay, known as the Lanthian. Verbena bought out the Dermot Company’s stake in the building for $49.5 million last February. Wong is himself an investor in Dermot, as well as a minority owner in the NBA team the Golden State Warriors.

9) Back-to-back Mack – $100 million
As part of a trio of deals that it closed with Mack Real Estate Credit Strategies last month, David Marx’s Marx Development Group increased its debt at 450 11th Avenue to $100 million, to fund predevelopment costs and hire an architect for the 42-story hotel project on the site. Marx also reportedly closed on a $201.5 million refinancing for the Courtyard by Marriott at 461 West 34th Street, but that deal has yet to hit public records.

10) Chang of pace – $79 million
“Budget Hotel King” Sam Chang’s McSam Group refinanced a hotel at 25 West 51st Street with a $83 million debt package from Madison Realty Capital (including $4 million in mezzanine debt), replacing a $100.5 million loan from Aareal Capital in 2016. Chang reportedly bought out the hotel’s branding partner, Club Quarters, in a deal that coincided with the new financing and a new equity injection. Chang announced in May that he planned to retire from the hotel business to focus on pigeon racing.

Related Articles

With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Compound CEO Janine Yorio and a Clinton Hill property available to users on Compound

Real estate micro-investing is here

Centrale at 138 East 50th Street and Ceruzzi Properties’ Arthur Hooper (Hooper by Sasha Maslov)

Ceruzzi Properties secures $350M to refi Midtown East tower

Denizen Bushwick at 54 Noll Street (Credit: iStock, Google Maps)

All Year closing in on $675M refi for Rheingold Brewery development

Denizen Bushwick at 54 Noll Street (Credit: Google Maps, iStock)

A major Bronx landlord is shorting All Year’s bonds. Are his concerns legit?

CrowdStreet CEO Tore Steen (Credit: iStock)

CrowdStreet hits $1B milestone, crowdfunding firm claims

Greystar CEO Bob Faith and the Parkside Place Apartments in Cary, North Carolina (Credit: Greystar and Apartments)

What Greystar’s belief in multifamily says about the health of the economy