New boutique office building headed for East Village’s St. Mark’s

Developers aiming for $150 psf rents in hot Midtown South market

New York /
Nov.November 14, 2019 02:15 PM
A rendering of 1 St. Marks Place

A rendering of 1 St. Marks Place

Another high-priced, boutique office building is moving forward in Midtown South.

Real Estate Equities Corp.’s development at 1 St. Mark’s Place in the East Village landed a nearly $80 million construction loan, according to property records filed with the city Wednesday.

South Korean financial services firm Hana Financial Group provided the $79.1 million loan, then sold the $48 million first mortgage to Madison Realty Capital  and held onto a $31.1 million mezzanine loan. VI Development Group arranged the debt.

A representative for REEC — headed by Brandon Miller and Mark Siegel — declined to comment.

REEC is planning to develop a 10-story, 65,000-square-foot office building on the site at the corner of St. Mark’s Place and Third Avenue.

The developers will be eyeing rents in the area of $150 per square foot. Such figures were once only seen in the most expensive locations in Midtown but now are commonplace for newly constructed office buildings in areas like the Meatpacking District, Soho and Greenwich Village.

The site at 1 St. Mark’s sits across the street from Minskoff Equities’ 51 Astor Place, the glass and steel building that arguably set the standard for new office construction when it opened in 2013. At the time, it was derided by locals as being out of character with the East Village’s complexion.

(That property was also financed by a South Korean investor, the Korean Teachers’ Credit Union, which in 2015 bought a 49-percent stake in the property valuing it at $600 million.)

Elsewhere in the area, Normandy Real Estate Partners and Columbia Property Trust are developing a 180,000-square-foot office building a few blocks north at 799 Broadway.

REEC controls the St. Mark’s property through a 99-year lease it signed in 2017 for north of $150 million.


Related Articles

arrow_forward_ios
Isaac Kassirer of Emerald Equity and 2 Cooper Square (Emerald Equity; Apartments)
Emerald Equity, David Werner behind on loan for East Village rental
Emerald Equity, David Werner behind on loan for East Village rental
From left: Letitia James, Raphael Toledano and Josh Zegen with 223 East 5th Street and 325 East 12th Street (Getty, Google Maps)
Madison Realty Capital to give Toledano tenants $1M in rent credits
Madison Realty Capital to give Toledano tenants $1M in rent credits
Charles Kushner and 329-335 East 9th Street (Google Maps, iStock)
Kushner Cos hit with class-action suit over illegal rent collection
Kushner Cos hit with class-action suit over illegal rent collection
19-23 St. Mark’s Place with Andy Warhol (Credit: Google Maps; Warhol by Mark Sink / Corbis via Getty Images)
Former Andy Warhol nightclub sold to UBS for $35M
Former Andy Warhol nightclub sold to UBS for $35M
Charles Kushner and 331 East 9th Street (Credit: Kusner Photo by Ilir Bajraktari/Patrick McMullan via Getty Images; Google Maps)
Judge grants Kushner tenants free rent at East Village complex
Judge grants Kushner tenants free rent at East Village complex
56 West 22nd Street and Michael Kasmierski (Credit: Google Maps)
Kaufman, AXA make $50M Midtown South buy
Kaufman, AXA make $50M Midtown South buy
42-46 2nd Avenue (Credit: Google Maps)
LA real estate firm buys shuttered church site for $40M
LA real estate firm buys shuttered church site for $40M
229 West 28th Street with Rodgers & Hammerstein (Credit: Getty Images, 229nyc, Rumi)
Lexin Capital puts Midtown South office building up for sale
Lexin Capital puts Midtown South office building up for sale
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...