Financing for huge self-storage deal leads Manhattan’s real estate loans

Len Blavatnik, Don Peebles, Sam Chang and the Elghanayans also scored financing last month

New York /
Mar.March 01, 2022 07:00 AM
Steve Witkoff and Kenneth Fisher with XI project, Manhattan Mini Storage, Park Avenue Plaza, 292 5th Avenue (Fisher Brothers, Witkoff, iStock)

Steve Witkoff and Kenneth Fisher with XI project, Manhattan Mini Storage, Park Avenue Plaza, 292 5th Avenue (Fisher Brothers, Witkoff, iStock)

The ten largest real estate loans recorded in Manhattan last month totaled more than $3.6 billion, led, in a sign of the times, by a mammoth acquisition loan for a self-storage operation.

The combined value of the month’s top loans easily bested last January’s  $1.95 billion, as well as December’s $2.5 billion.

Other notable loans included the securitization of Fisher Brothers’ debt on Park Avenue Plaza and $315 million in new debt issued as part of Steve Witkoff’s takeover of HFZ’s bankrupt XI luxury condo development in Chelsea.

Below are more details on all 10:

1. Storing value | $1.7 billion

The real estate divisions of Citibank and Barclays lent $1.7 billion for Storagemart’s acquisition of Manhattan Mini Storage, consisting of ​​18 self-storage facilities in the borough, from Edison Properties. Missouri-based Storagemart bought the brand and its properties for just over $3 billion. Total financing on the transaction, which included refinancing prior debt on four additional properties, amounted to $2.15 billion.

2. The Fisher Kings | $460 million

Fisher Brothers refinanced its Park Avenue Plaza office building with a $460 million mortgage loan from Morgan Stanley, which will be sold along with a $115 million mezzanine loan, will be  as commercial mortgage-backed securities (CMBS) to investors. The 10-year, interest-only loans will retire existing debt and pay investors a fixed annual interest rate of 2.84 percent. Morgan Stanley also will take over 400,000 square feet of space in the building from Blackrock, Bloomberg reported.

3. Under new management | $315 million

Steve Witkoff and Len Blavatnik received $315 million in mortgage loan proceeds from JPMorgan in their quest to complete the stalled XI luxury condo development at 76 11th Avenue on the High Line in West Chelsea. After the original developer, HFZ Capital, suffered a financial collapse, Witkoff took the project over and holds $805 million in debt, records show, while JPMorgan holds a total debt amount of $915 million. The property is sometimes referred to as 501 West 17th Street.

4. Hotel hand up | $203 million

Mid-market hotelier Sam Chang received a $203 million refinance loan, including $48 million of new debt, from private equity firm Oak Hill Advisors for the 21-story Le Meridien hotel at 292 5th Avenue in NoMad and a 28-story hotel operated by Radisson Hotels at 25 West 51st Street in Midtown. Debt on the hotels was previously held by Spruce Capital Partners and Madison Realty Capital, respectively.

5. Stake for dinner | $189 million

Henry and Justin Elghanayan’s Rockrose Development received $188.7 million in loan proceeds to acquire the remaining stake in 11 East 26th Street, a 281,000-square-foot office building in NoMad, from German lender Deutsche Pfandbriefbank. The $148 million purchase values the pre-war building at $275 million.

6. Clock strikes green | $184 million

Don Peebles and El Ad Group secured $184 million from JPMorgan, including $65 million in newly issued debt, to refinance the landmarked Clock Tower Building at 108 Leonard Street in Tribeca. Lionheart Strategic Management provided proceeds at the mezzanine level, bringing the total value of the financing package to $229.4 million. The funds replace debt held by Mack Real Estate Credit Strategies.

7. Resi redevelopment | $181 million

Wafra Capital Partners, an affiliate of Kuwait’s sovereign wealth fund, received $180.8 million  in proceeds from Pacific Western Bank to buy and develop 720 West End Avenue, a vacant 237,000-square-foot residential building with 117 units on the Upper West Side. Related Companies provided additional funds at the mezzanine level to bring the total value of the debt package to $225 million.

8. Hotel hand up II | $145 million

Magna Hospitality Group received $145 million from PIMCO to refinance debt on its 570-key hotel at 338 West 36th Street. The proceeds consolidate loans held by Pembrook Capital Management, Deutsche Bank and Bank of the Ozarks (now Bank OZK). Magna bought  the hotel from Sam Chang’s McSam Hotel Group in 2019 for $274.3 million.

9. Park Avenue package | $139 million

L&L Holding landed $139.5 million from Otera Capital Investment to complete its 47-story office tower at 425 Park Avenue. Otera is refinancing $476.5 million in debt as part of a nearly $1 billion package led by Blackstone Real Estate Debt Strategies to retire the building’s original construction loan and cover the final stages of the project, which is expected to be completed early this year.

10. Rentals rising | $128 million

USAA Real Estate received $128 million in mortgage loan proceeds from PCCP secured by a 16-story rental building known as the Buchanan at 160 East 48th Street in Midtown East. Madison Realty Capital bought the residential building with USAA as an equity partner in 2016 for $270 million. USAA Real Estate portfolio director Edmund Donaldson signed for the mortgage loan.





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