Multifamily reeled in New York’s biggest refis last month

Luxury and ground-up multifamily projects scored large refinance loans last month, with DTH Capital and Rose Associates landing the largest loan in Manhattan for an office-to-resi building that was completed in 2016.

Given supply constraints (see also, 421a), New York’s rental market remains robust. However, higher interest rates may require owners to take on costlier debt when a prior loan, made at a time of lower rates, reaches its term. That inconvenience has left some multifamily investors in distress. 

The 10 largest real estate loans across New York City totaled $1.05 billion, slightly less than January’s $1.09 billion. The amount was about $352 million less than the top 10’s last February. 

Here’s the rundown:

Landmarked loan | $395 million | Financial District

Goldman Sachs refinanced 70 Pine Street, an office-to-residential conversion in the Financial District with 612 rental units and a 132-key hotel owned by DTH Capital and Rose Associates, with $395 million. The debt replaces a $386 million CMBS loan from 2019 secured by the 66-story, 1-million-square-foot building. (Goldman Sachs issued the loan before it was sold to investors as bonds.) The landmarked Art Deco tower is home to restaurants Saga and Crown Shy, and a 22,000-square-foot gym. Built in 1932, the tower was owned by AIG until the insurer went bankrupt following the 2008 financial crash. The building officially became a landmark in 2011; the conversion was completed in 2016. 

La vie en luxe | $146 million | Lenox Hill

Apollo Global Management affiliate Athene Annuity and Life provided $146 million to refinance Two Sutton Place North, a 200-unit luxury rental building in Manhattan’s Lenox Hill neighborhood. RXR and Go Partners, a joint venture of Josh Gotlib and Meyer Orbach, bought the building in 2022 as part of a $850 million deal for three buildings developed by the late Sheldon Solow. 

Refi, Rebrand | $89 | Hudson Yards

Madison Realty Capital lent David Marx $89 million for his hotel project at 450 11th Avenue. Madison also provided a $44 million mezzanine loan and the developer nabbed EB-5 financing. The total refi was $185 million. Marx upgraded and rebranded the Hudson Yards project after securing the new financing. The on-again, off-again project, which was originally slated to be an Aloft hotel, will now be part of Marriott’s Tribute portfolio, a line of high-end boutique hotels. 

Bridge from Florida | $75 million | Flatbush

Florida-based Dwight Capital replaced construction financing at 210 Clarkson Avenue, a new multifamily building with 165 rental apartments in Flatbush, Brooklyn, with a $75 million loan. The project was developed by K2 Real Estate Partners. Scale Lending, an affiliate of Slate Property Group, was the construction lender. Studios at the 165,000-square-foot project lease for $3,000 per month; one-bedrooms go for up to $3,750 per month, according to StreetEasy.

A ticking clock | $75 million | Gowanus

JP Morgan Chase provided $75 million in construction financing for a 188-unit multifamily building at 164 4th Avenue in Gowanus, Brooklyn. Artimus Construction — led by  Ken Haron, Eytan Benyamin and Barry Gurvitch — is developing the project in partnership with the Wiczyk family’s Heron Real Estate. GKV is the architect on record, and the development will have about 32,000 square feet of commercial space. The Gowanus neighborhood became a hotbed of development following an upzoning. Total construction debt for the project comes to $90 million. The Artimus project will be eligible to receive the 421a tax abatement provided it meets the June 2026 completion deadline.

More of Morgan | $75 million | Murray Hill

JP Morgan Chase provided construction financing to Brause Realty for a 20-story multifamily building with 157 residential units at 729 Second Avenue in Manhattan. The 237-foot-tall project will include 4,600 square feet of retail space and is being designed by CetraRuddy. Amenities will include a roof deck, gym, coworking space, children’s playroom and tenant club. JP Morgan has made several construction loans recently for multifamily development as the 2026 deadline for the completion of 421a projects approaches.

Florida funding | $65 million | Turtle Bay

Williams Equities refinanced a 340,000-square-foot office building at 304 East 45th Street in Turtle Bay with $65 million in CMBS debt originated by Toby Cobb’s Florida-based 3650 REIT. The building is fully leased by divisions of the United Nations, said Michael T. Cohen, who signed for the loan. Ackman-Ziff arranged the 5-year, interest-only debt, which replaced $80 million in loans from John Hancock Life Insurance, the kind of institutional lender that has faded away amid uncertainty over interest rates.

The long game | $48 million | Bushwick, Williamsburg, Carroll Gardens

The Carlyle Group received a $48 million loan from Invesco, secured by 22 small apartment buildings across Brooklyn, including in Bushwick, Williamsburg and Carroll Gardens. Carlyle affiliates paid cash for the multifamily properties during the second half of 2023, property records show. The private equity giant has continued amassing smaller, tax-protected buildings typically owned by smaller landlords since The Real Deal first reported Carlyle’s plan and a $500 million loan from Invesco secured by prior acquisitions.

Robust rental | $44 million | Williamsburg

Deutsche Bank took over lending at developer Joel Schwartz’s 51-unit apartment building, completed in 2020, at 228 Berry Street in Williamsburg, Brooklyn. The German banking giant loaned Schwartz $43.5 million, including a new $15.5 million gap loan. No units in the 8-story building are for lease, according to StreetEasy. One-bed, one-bath apartments at the building recently rented for $3,300 per month, with two-bedrooms renting for between $6,000 and $7,300 per month. Schwartz bought the development assemblage for the project in 2021 for $13.8 million. 

Robust rental II | $42 million | Williamsburg

Deutsche Bank became the senior lender for Joel Schwartz’s 63-unit multifamily building at 209 North 11th Street in Williamsburg with nearly $42 million, including a new $15 million gap loan. No units in the 7-story building are for lease, according to StreetEasy. Tenants recently leased one-bed, one-bath units for $5,000 per month, with two-bedrooms renting for $7,000 per month. Schwartz obtained a 49-year ground lease of the development site in 2021 from Mark Berezowsky for $13.4 million.