These were the 10 largest Manhattan real estate loans in October

Fosun’s $1.1B refi of Manhattan flagship topped the list

Nov.November 06, 2019 12:15 PM
28 Liberty Street, 335 Madison Avenue, One Manhattan Square and 1295 Fifth Avenue (Credit: Google Maps, StreetEasy)

28 Liberty Street, 335 Madison Avenue, One Manhattan Square and 1295 Fifth Avenue (Credit: Google Maps, StreetEasy)

The top 10 Manhattan loans recorded in October totaled just under $5 billion, a 66 percent increase from the month prior. The largest was Fosun International’s $1.1 billion refinancing of its flagship property at 28 Liberty Street, which it was rumored to be selling.

1) Fosun finance — $1.1 billion
Deutsche Bank and HSBC provided $1.025 billion to refinance Fosun International’s mixed-use property at 28 Liberty Street. CBRE, which was previously reported to be marketing the building, helped Fosun explore a variety of options to raise capital for the building before deciding on a refinancing. CBRE’s Darcy Stacom and William Shanahan had led Chase’s sale of the 60-story building, then known as One Chase Manhattan Plaza, to Fosun for $725 million in 2013.

2) Loans + Mortgages — $823 million
L+M Development Partners and Invesco Real Estate closed on their purchase of Brookfield’s Putnam portfolio with about $823 million in financing from Wells Fargo, which covered four of the five properties the partners acquired. The debt came in the form of an agency loan with Fannie Mae. Wells Fargo said the acquisition “will help preserve the affordability of hundreds of rental units.” Brookfield’s full six-building portfolio includes about 4,000 units.

3) Three’s Company — $650 million
Milstein Properties secured the loan from Brookfield Property Partners for “The Company Building” at 335 Madison Avenue. The firm initially planned to tear it down, but later committed to a $100 million renovation and is now targeting tech tenants by offering incubator space and discounted rents. Facebook inked a lease for 40,000 square feet at the tower last year.

4) (Two) Bridge loan — $515 million
Blackstone Group provided the $515 million senior loan, as well as a roughly $140 million mezzanine loan, to refinance the unsold units at Extell Development’s 80-story, 815-unit One Manhattan Square. The Two Bridges condo project was heavily marketed towards Asian investors and units have been selling at a brisk pace in recent months. Extell has said it will waive common charges for up to a decade to spur sales.

5) Sachs Sixth Avenue — $421 million
RXR Realty landed just over $421 million in financing from Goldman Sachs for 620 Avenue of the Americas, a 760,000-square-foot building in Chelsea. The property’s 220,000 square feet of retail are leased to T.J. Maxx, Marshalls and Bed Bath & Beyond, while WeWork inked a major lease at the building in May for 212,400 square feet across three floors, replacing the offices of Spotify and Mediaocean.

6) Pine Rose apartments — $386 million
Rose Associates and partner DTH Capital refinanced 70 Pine Street, a 1-million-square-foot landmarked apartment building, with a $386 million loan from Goldman Sachs. The art deco tower, which faced many delays in its conversion before finally welcoming tenants in 2016, is also home to a 132-room hotel, fitness center, stores and a four-level restaurant.

7) Hanover turnover — $344 million
Square Mile Capital provided $430 million in construction financing for 7 Hanover Square, which the Gural family’s GFP Real Estate, Northwind Group and TPG Real Estate Partners are redeveloping into modern offices. The property will be separated into two portions with addresses at 100 Pearl Street and 50 Water Street. The owners have already leased 525,000 square feet in the latter portion to NYC Health + Hospitals.

8) OZK/OKO — $300 million
Vladislav Doronin’s OKO Group secured a $750 million construction loan for its luxury condominium conversion at the Crown Building, of which a $300 million senior portion was provided by Bank OZK. The remaining $450 million in mezzanine debt was provided by investment firm Cain International. The lower, retail portion of the building, owned by Wharton Properties and Brookfield, landed an $800 million refinancing of its own last month.

9) Sotheby’s — $251 million
BNP Paribas provided a $251 million refinancing for the headquarters of global auction house Sotheby’s at 1334 York Avenue. The debt closed on the same day that billionaire telecom executive and art collector Patrick Drahi closed on his $3.7 billion purchase of Sotheby’s, according to PincusCo. BNP Paribas also led the $2 billion in financing for that acquisition, which took the firm off the New York Stock Exchange after 31 years.

10) Mack — $201 million
As part of a trio of debt deals it closed with Mack Real Estate Credit Strategies last month, David Marx’s Marx Development Group secured a $201.5 million loan to refinance the 399-key Courtyard by Marriott Hudson Yards at 461 West 34th Street, which has since opened for business. The new debt takes out financing provided by the Moinian Group last year.

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