KPG scores $64M refi for Soho office building

Ladder Capital, Heitman provided the debt package at 446 Broadway, which KPG says is now fully leased

New York /
Mar.March 08, 2022 05:15 PM
Rod Kritsberg with 446 Broadway (KPG, Google Maps, iStock)

Rod Kritsberg with 446 Broadway (KPG, Google Maps, iStock)

Greg Kraut’s KPG Funds secured $63.6 million in new debt for its efforts to turn around a formerly vacant Soho office building.

Senior lender Ladder Capital teamed up with Heitman to provide the debt package to refinance 446 Broadway, also known as L’Atelier, Commercial Observer first reported.

Since acquiring the five-story office and retail property in 2018 for $45 million, KPG has spent more than $10 million on renovations, including updates to the building’s lobby, elevators, windows and facade, according to the publication.

Cabin Editing Company, a Los Angeles-based production company, signed a lease for the building’s top floor in July. The Orb, a tech startup, leased a different floor in the building in September.

Only the third floor remains available for lease, according to the building’s website.

A Newmark team led by Dustin Stolly and Jordan Roeschlaub arranged the financing.

KPG went into contract to buy the 37,000-square-foot building in May 2018 for $45 million, months after it hit the market for $58 million. Architect John Butler Snook designed the building, which was completed in 1877.

Last year, KPG picked up two money-losing retail properties from Vornado Realty Trust at 155 Spring Street and 478-482 Broadway, both of which are destined to become office buildings. KPG paid approximately $85 million for the properties, sources said at the time.

KPG launched a $200 million fund in 2020 to buy small Class B and Class C office properties and redevelop them into Class A offices. The firm was targeting properties with prices ranging from $85 million to $300 million.

[CO] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
    Real estate stocks push up this week as U.S.-China trade tensions ease
    Real estate stocks push up this week as U.S.-China trade tensions ease
    416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
    Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
    Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
    From left: Vice Media CEO Nancy Dubuc, Rudin’s CEO and co-chairman Bill Rudin, and Dock 72 (Getty Images, S9 Architecture, Rudin Management, iStock)
    Vice scraps move to Rudin’s Dock 72
    Vice scraps move to Rudin’s Dock 72
    From left: Metro Loft Management founder Nathan Berman, Silverstein Properties chairman Larry Silverstein, and 55 Broad Street (Metro Loft, Silverstein Properties, LoopNet)
    Silverstein, Metro Loft pick up Rudin’s 55 Broad Street for $180M
    Silverstein, Metro Loft pick up Rudin’s 55 Broad Street for $180M
    1552-1560 Broadway and Wharton Properties’ Jeff Sutton (Google Maps)
    Investor claims Jeff Sutton cheated him out of millions on Times Square deal
    Investor claims Jeff Sutton cheated him out of millions on Times Square deal
    Burberry's Jonathan Akeroyd with 11 West 42nd Street (Getty, Google Maps, iStock)
    Burberry sews up deal at Tishman Speyer building
    Burberry sews up deal at Tishman Speyer building
    Adam Leitman Bailey, Y. David Scharf, and Miki Naftali with 215 West 84th Street (Adam Leitman Bailey, Morrison Cohen, Getty)
    Naftali lays out project as holdout tenant plays new card
    Naftali lays out project as holdout tenant plays new card
    Taconic Partners' Matthew Weir and Hudson Research Center 61 at 9 West 54th Street (iStock, Taconic Partners, Hudson Research Center)
    RPI signs at Taconic and Silverstein’s life sciences hub
    RPI signs at Taconic and Silverstein’s life sciences hub
    arrow_forward_ios

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

    Loading...