ZG Capital refinances 1450 Broadway with $215M

Bobby Zar’s firm gets CMBS loan from Bank of Montreal three years after previous refi

New York /
Aug.August 26, 2021 11:45 AM
1450 Broadway (Google Maps)

1450 Broadway (Google Maps)

UPDATED, Aug. 26, 2021, 2:26 p.m.: Bobby Zar’s ZG Capital Partners is back for another refinancing of 1450 Broadway.

The Zar Group affiliate has arranged for a $215 million commercial mortgage-backed securities loan on the office property. Bank of Montreal is the lender in the single-asset, single-borrower transaction — a five-year, interest-only loan, according to Commercial Observer.

A team led by Newmark’s Jordan Roeschlaub and Dustin Stolly arranged the debt.

The loan, which closed on Wednesday, replaces a 2018 refi from Goldman Sachs. That $170 million loan included a $67.4 million gap mortgage and replaced a $114 million loan from UBS Real Estate Securities.

ZG Capital purchased the 42-story property from a venture by the Moinian Group, Chetrit Group and Edward J. Minskoff Equities in 2011 for $204 million. At the time, a pivot to a residential property was mulled, but that has not come to fruition.

The 439,785-square-foot building near Times Square and Bryant Park is anchored by WeWork. It underwent an extensive renovation in 2018, including a new lobby, elevators and an HVAC system controlled by tenants.

A few months ago, ZG Capital acquired a 20,000-square-foot mixed-use building at 654 Broadway Avenue in Noho. Zar’s company bought the building from Acadia Realty Trust for $10 million.

[CO] — Holden Walter-Warner

This article was updated to include the brokers that arranged the financing deal.





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