601W lands $705M loan to fund West Side office buy
Chicago investor paid $950M for SL Green’s Amazon-anchored property
The 601W Companies landed a massive loan for what’s said to be the biggest office property to trade hands since the start of the pandemic.
JPMorgan Chase is providing the Chicago-based investor with a $705 million loan to fund the acquisition of SL Green Realty Trust’s 410 10th Avenue, Commercial Observer reported. The seven-year, fixed-rate loan will be securitized.
601W is paying $952.5 million, or roughly $1,550 per square foot, for the 636,000-square-foot office property. The building is anchored by Amazon and First Republic Bank, which have leased 335,000 and 212,000 square feet, respectively. The sale was first reported in November.
The 410 10th Avenue deal stands out for being the most expensive since the pandemic struck.
“That’s a huge price,” Compass broker Adelaide Polsinelli told The Real Deal in November. “It’s a deal that instills a lot of hope and confidence now that a foundation for values has been set.”
The price would also make the deal the second-largest investment sale in New York City this year, after Amazon’s $978 million buy of the former Lord & Taylor building at 424 Fifth Avenue, which closed in January.
As part of the deal, SL Green will retain a 5 percent interest in the 20-story redevelopment, which sits near two megaprojects: the Related Companies’ Hudson Yards and Brookfield’s Manhattan West. And 601W — headed by Victor Gerstein, Michael Silberberg and Mark Karasick — will also assume a $600 million construction loan SL Green took out to fund renovations. The REIT previously said the project was expected to be complete by the third quarter of 2021.
CBRE’s Darcy Stacom brokered the sale and Meridian Capital Group negotiated the financing.
[CO] — Danielle Balbi