These were the 10 largest Manhattan real estate loans in August
More than half of the Top 10’s volume came from One Bryant Park refi
The top 10 Manhattan loans recorded in August totaled $2.98 billion, a 79 percent increase from July’s total. More than half of that came from just one deal — the Durst Organization and Bank of America’s $1.6 billion refinancing of One Bryant Park.
1) Me, Myself, and I – $1.6 billion
Bank of America led a $1.6 billion refinancing of One Bryant Park, also known as the Bank of America Building, in a single-asset single-borrower CMBS transaction. The bank itself occupies 78 percent of the 2.4-million-square-foot office tower, and owns a 49.99 stake in the building in partnership with the Durst Organization — although most of the ground underneath is owned by the Empire State Development Corporation. The new financing consists of a $950 million CMBS loan and a $650 million Liberty Bonds loan, according to a report from Kroll Bond Rating Agency.
2) Beacon of loans – $309 million
Beacon Capital Group landed a $309 million debt package to refinance a 370,000-square-foot office condominium at 575 Fifth Avenue, home to Barneys New York’s corporate headquarters and a large WeWork space. The new debt from TPG Real Estate Finance replaces a previous loan from Deutsche Bank. Residential brokerage Keller Williams Midtown relocated to the WeWork space late last month, as part of a downsizing amid a tough market.
3) Caiola collateral – $272 million
The Blackstone Group secured a $272 million senior loan to refinance 11 Manhattan apartment buildings that it acquired in 2015 as part of the 24-building Caiola portfolio, in partnership with Fairstead Capital. The financing, which was arranged by Morgan Stanley, is set to be included in a single-asset mortgage-backed securities deal, per Moody’s. South Korean investment bank Mirae Asset Daewoo provided a $50 million junior mezzanine loan for the properties as well.
4) Divco, East – $170 million
SunTrust Bank and Bank of New York Mellon provided a $170 million loan to fund DivcoWest’s $310 million acquisition of Boston Properties’ 540 Madison Avenue, which is California-based Divco’s second office acquisition in New York City. The firm, which mainly focuses on tech-heavy West Coast markets, was reportedly attracted to the building’s large, tech-friendly floor plates. The tower is 89 percent leased to tenants like CIM Group and MEAG NY.
5) Merry Refis of Windsor – $125 million
Ogden CAP Properties landed $125 million from JPMorgan Chase to refinance the 709-unit apartment property at 155 East 31st Street, known as Windsor Court. The new financing replaces a $50 million loan provided this February by BNY Mellon (the no. 10 loan in a slow month) as well as $58.6 million in Freddie Mac financing. The property is one of New York’s highest-earning rental complexes.
6) (tied) Marx’s revolution – $110 million
After renovating and repositioning the office tower 708 Third Avenue as 10 Grand Central, Marx Realty refinanced the 35-story property with a $110 million senior loan from MetLife Real Estate Lending, as part of a $140 million debt package. “We don’t want to be associated with Third Avenue,” Marx CEO and President Craig Deitelzweig said last year, at the start of a $45 million renovation that moved the building’s entrance to East 44th Street.
6) (tied) A full 360 – $110 million
Barclays Bank provided a $110 million senior mortgage — as part of a $126 million debt package — to Savanna for its $180 million acquisition of 360 Lexington Avenue from AEW Capital Management. AEW Capital, the real estate investment arm of French investment bank Natixis, had put the 26-story building on the market earlier this year, while the firm’s lending art has recently struggled with volatility in the New York market.
8) (Kips) Bay Area – $103 million
Bay Area developer Dennis Wong’s Verbena Road Holdings secured a $103 million loan from New York Life Insurance Company to refinance the 23-story luxury rental building at 377 East 33rd Street in Kips Bay, known as the Lanthian. Verbena bought out the Dermot Company’s stake in the building for $49.5 million last February. Wong is himself an investor in Dermot, as well as a minority owner in the NBA team the Golden State Warriors.
9) Back-to-back Mack – $100 million
As part of a trio of deals that it closed with Mack Real Estate Credit Strategies last month, David Marx’s Marx Development Group increased its debt at 450 11th Avenue to $100 million, to fund predevelopment costs and hire an architect for the 42-story hotel project on the site. Marx also reportedly closed on a $201.5 million refinancing for the Courtyard by Marriott at 461 West 34th Street, but that deal has yet to hit public records.
10) Chang of pace – $79 million
“Budget Hotel King” Sam Chang’s McSam Group refinanced a hotel at 25 West 51st Street with a $83 million debt package from Madison Realty Capital (including $4 million in mezzanine debt), replacing a $100.5 million loan from Aareal Capital in 2016. Chang reportedly bought out the hotel’s branding partner, Club Quarters, in a deal that coincided with the new financing and a new equity injection. Chang announced in May that he planned to retire from the hotel business to focus on pigeon racing.