Two Midtown South offices land $52M refi
Aron Rosenberg’s R&B Realty secured financing from Lightstone Capital
R&B Realty Group is at it again, refinancing a pair of office buildings one year after a similar deal staved off foreclosure at the Midtown South properties.
Aron Rosenberg’s firm landed a combined $52 million to refinance office buildings at 28 West 36th Street and 32 West 39th Street, the Commercial Observer reported. Lightstone Capital was the senior lender on the transaction.
Lightstone senior managing director Eugene Rozovsky told the outlet the buildings are historically 90 percent leased and believes the condo conversions in the latter will sell “briskly.” Lightstone has executed more than $200 million in loans this year alone.
Rozovsky led the deal for the lender, according to the Observer. Tal Bar-Or of Lantern Real Estate negotiated the transaction, which reportedly closed in 10 business days.
If this all sounds familiar, it’s because a similar refinancing package was bestowed upon the buildings a year ago. Ladder Capital in March 2021 provided R&B slightly under $51 million to pay off its loans, helping to save the two buildings from possible foreclosure.
The two buildings were the subject of a lawsuit after the landlord filed a case to prevent Maverick Real Estate Partners from foreclosing. R&B claimed Maverick was “charging a default interest of 24 percent on each of the loans, and seems intent to … acquire the buildings on the cheap.”
Rudder Property Group announced last month it would be handling sales and marketing of the 16-story office condo conversion at 32 West 39th Street.
Sales at the 87,000-square-foot building, constructed in 1925, are expected to begin next quarter. Renovation work recently restored the facade and upgraded both the lobby and elevators. Floor plans will range from 3,970 to 8,371 square feet, though combinations are possible.
The building on West 36th Street spans 66,000 square feet and includes ground-floor retail, rising 12 stories tall.
[CO] — Holden Walter-Warner