Ten biggest Manhattan real estate loans in December top $2.5B
Notable debt included $507 million in proceeds to acquire Hudson Commons, $204 million to build in Hell’s Kitchen
Last month was a big one for major Manhattan real estate loans, as the 10 largest totaled $2.5 billion, led by a $1 billion refinancing of Boston Properties’ 601 Lexington Avenue.
The total exceeded November’s as well as last December’s. Notable loans included $507 million for the $1 billion acquisition of Hudson Commons at 441 Ninth Avenue, the city’s biggest investment sale in more than two years, and $204 million to build a 33-story tower in Hell’s Kitchen.
Here are the details.
1. Billion for Boston | $1 billion
Boston Properties, one of the nation’s largest office REITs, secured $1 billion from a consortium of banks to refinance its 1.7 million-square-foot office tower at 601 Lexington Avenue in Midtown. Lenders include Wells Fargo, Deutsche Bank, Morgan Stanley and Citigroup. The package includes $384 million in new debt. Norges Bank Investment Management owns a 45 percent interest in the building.
2. Uncommonly large | $507 million
Los Angeles-based CommonWealth Partners received $507 million in loan proceeds from Deutsche Bank affiliate DBR Investments to purchase Hudson Commons at 441 Ninth Avenue for $1 billion. It was the city’s biggest investment sale in more than two years. The Hudson Yards office building is 75 percent leased to tenants including Peloton and Lyft. Cove Property Group and Baupost Group bought the warehouse site in 2016 to develop the 700,000-square-foot, LEED platinum building.
3. Ripe for a deal | $220 million
Boston Properties secured $220 million in loan proceeds from the Bank of New York Mellon to purchase a 42 percent stake in 360 Park Avenue South, a 390,000-square-foot office building in NoMad, for $300 million. The building was previously occupied by one tenant: British analytics firm Relx. Boston Properties has begun renovating common areas and will be responsible for leasing.
4. Hell’s tower | $204 million
Taconic Investment Partners and National Real Estate Advisors landed $204 million in construction loans from Ullico subsidiary Union Labor Life Insurance for a 33-story, mixed-use building at 314 West 43rd Street in Hell’s Kitchen. The 367,000-square-foot development will have 330 luxury rentals.
5. Cash for co-ops | $115 million
The Seward Park Housing Cooperative, part of Cooperative Village on the Lower East Side, secured $115 million from Orix Real Estate Capital, including a $74 million mortgage loan. Seward’s 1,729 units were built with the backing of organized labor in 1960. Its shareholders rejected overtures to sell air rights in 2019 to Ascend Group, which settled for building one rather than two residential buildings as a result.
6. Somerset city | $110 million
Keith Rubenstein’s Somerset Partners and Meadow Partners refinanced 300 East 42nd Street near Grand Central Terminal in Midtown East with a $110 million loan from Fortress Investment Group. The deal follows renovations at the 208,000-square-foot office building and includes $4 million in new financing.
7. Reno then refi | $105 million
Nelson Management Group and L+M Development Partners secured $105 million from German lender Helaba to refinance a 19-story, 256-unit rental building at 275 South Street in Two Bridges on the Lower East Side. The loan follows renovations at the building and the maturation of a five-year term loan from Citibank.
8. Office hold-me-over | $98 million
Vanbarton Group secured $98 million from MSD Partners, including a $52 million gap loan, at 13-17 Laight Street, a 97,800-square-foot office conversion project in Tribeca. The loan replaces prior debt held by Paramount Group. The address is also known as 52 Varick Street.
9. Cheery in Chelsea | $85 million
Meadow Partners consolidated debt on its newly purchased 12-story office building at 218 West 18th Street in Chelsea with $85 million in loan proceeds from insurance firm Athene Annuity and Life Company. The loan includes $18.6 million in gap funds. Meadow Partners bought the building from Columbia Property Trust for $170 million. Tenants at the 166,000-square-foot structure include Red Bull, film production company Deluxe Creative Services and the SAE Institute of Technology.
10. Epic conversion | $66.5 million
Iliad Realty’s condo conversion at 67 Vestry Street in Tribeca has a new lender. Deutsche Bank took over from Silverstein Capital Partners at the 13-unit building with a $66.5 million loan that includes construction financing and the senior loan. The condo made The Real Deal’s list of best-selling new developments last year. Iliad bought the building from Aby Rosen’s RFR Realty in 2017 for $55.5 million after Rosen’s firm failed to get support for its plan to partly demolish the building.