Wafra lands $225M for 720 West End Avenue

Kuwaiti investor reported to close deal Dec. 23

New York /
Dec.December 23, 2021 01:49 PM
Wafra lands $225M for 720 West End Avenue

720 West End Avenue in Manhattan NYC and Wafra Capital Partners CEO Robert Toan (Google Maps)

As Wafra Capital Partners nears a deal to buy 720 West End Avenue, it’s getting a major assist in the form of acquisition financing.

The affiliate of Kuwait’s sovereign wealth fund is receiving $225 million in financing from Pacific Western Bank and Related Companies for the transaction, according to the Commercial Observer. PacWest is the senior leader in the financing, while Related is in the mezzanine position.

When Wafra — through entity WCP Investments — entered into contract to buy the 16-story building, the expected price tag was about $165 million. The Observer reported the deal has increased to $170 million and is expected to close on Dec. 23.

Brack Capital Real Estate put the building up for sale in June. The building is vacant and gutted, leaving a range of possibilities for its future. According to the Observer, a conversion to condos is one potential option for WCP; Brack Capital reportedly had plans for a series of condos and earned approval on plans from the Department of Buildings and the Landmarks Preservation Commission to convert and expand the property.

A Cushman & Wakefield team including Adam Spies and Adam Doneger helped negotiate the sale of the building, while a Cushman & Wakefield team including Gideon Gil and Lauren Kaufman negotiated the financing.

Before Brack Capital purchased the building for $108 million, the Salvation Army utilized the property as a senior housing facility. The sale of the 352-unit development drew the attention of the state attorney general because of concerns over tenant protection laws. The Salvation Army ultimately agreed to pay moving expenses and pass on potential rent increases at a new housing site for the first 18 months.

Earlier this year, Wafra partnered with Nightingale Properties to buy the land underneath 111 Wall Street for $220 million. Previously, the joint venture acquired the leasehold interest of the 24-story office property for $175 million. The joint venture also secured $500 million in debt to redevelop the property.

[CO] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    (iStock/Illustration by Kevin Rebong for The Real Deal)
    NYC investment sales hit multi-year peak to end 2021
    NYC investment sales hit multi-year peak to end 2021
    Tax assessments rise 9%, signaling higher bills for landlords
    Tax assessments rise 9%, signaling higher bills for landlords
    Tax assessments rise 9%, signaling higher bills for landlords
    From left: Ryan Johnson and Jeff Berens, co-founders of Culdesac, in front of a rendering of Culdesac Tempe (Culdesac, iStock)
    Startup that wants to build car-free cities raises $30M Series A
    Startup that wants to build car-free cities raises $30M Series A
    From left: Stephen Schwarzman, chairman, Blackstone; Barry Sternlicht, chief executive officer, Starwood Capital Group (Getty Images, Brookfield Asset Management/Illustration by Steven Dilakian for The Real Deal)
    Blackstone, Starwood to pay $1.5B for WoodSpring Suites properties
    Blackstone, Starwood to pay $1.5B for WoodSpring Suites properties
    Keith Powers, Democratic District 4 representative on the New York City Council, in front of 45 East 45th Street (Getty Images, The Roosevelt Hotel, iStock/Illustration by Steven Dilakian for The Real Deal)
    Local lawmakers aim to landmark shuttered Roosevelt Hotel
    Local lawmakers aim to landmark shuttered Roosevelt Hotel
    Former WeWork CEO Adam Neumann (Getty Images, iStock, Yard 8 Miami, Stacks on Main, Trulia, Power Design Inc., Inkwell Decatur, Wikipedia, Illustration by Kevin Cifuentes for The Real Deal)
    Depreciation Man: Adam Neumann’s real estate binge to ease tax bill
    Depreciation Man: Adam Neumann’s real estate binge to ease tax bill
    A photo illustration of 51-53 East 73rd St, 300 De Witt Ave, 137 Bayard Street and 3044 Coney Island Ave (LoopNet, Rosewood Realty Group/Illustration by Steven Dilakian for The Real Deal)
    Ten mid-market investment sales to start your day
    Ten mid-market investment sales to start your day
    M&T CFO Darren King (The Org and iStock)
    Real estate lender’s bleak outlook and earnings decline perplexes analysts
    Real estate lender’s bleak outlook and earnings decline perplexes analysts
    arrow_forward_ios

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

    Loading...