Lenders pumped big bucks into two Midtown office buildings in October, perhaps another sign that the Manhattan market is springing back to life.
Tishman Speyer scored a blockbuster $3.5 billion refi at Rockefeller Center. It was the largest CMBS transaction ever for a single office asset. A few blocks east, Alexander’s landed a $400 million refi at the Third Avenue building where Bloomberg just renewed the lease for its headquarters – but not before the landlord chipped in some of its own cash.
Across the river in Brooklyn, Related Companies nabbed a refi for part of the Gateway Center mall and multifamily projects had a big month. Three luxury rental towers landed loans – two of them to finance Downtown Brooklyn acquisitions. Private equity giant KKR was the seller in one of those transactions and the buyer in another.
Here are more details.
Rock’n’roll | $3.5B | Midtown
Bank of America and Wells Fargo provided a $3.5 billion commercial mortgage-backed securities loan for Tishman Speyer’s iconic Rockefeller Center. The deal is the largest CMBS transaction since April 2022, according to CoStar data, and is the largest issued ever for a single office asset. The transaction refinanced $3 billion in remaining debt on the property and utilized $246.8 million as a reserve budget to cover rents and services to tenants and landlords. Almost $180 million in equity will be returned to investors.
Riches for Roth | $400M | Midtown East
Deutsche Bank, JPMorgan Chase Bank and Wells Fargo Bank provided $400 million to refinance Alexander’s 731 Lexington Avenue, where Bloomberg is headquartered. The loan hit public records the month after the REIT run by Vornado Realty Trust’s Steven Roth spent more than $300 million to secure a lease renewal from Michael Bloomberg’s company. The four-year loan is set to be securitized in a standalone CMBS deal. The landlord kicked in $115 million in fresh capital.
Mall haul | $300M | East New York
Bank of America provided a $300 million loan for a 607,000-square-foot portion of Related Companies’ Gateway Center, a 1.2 million-square-foot shopping center in East New York, Brooklyn. The fresh financing replaced a $300 million CMBS loan. Tenants at the properties securing the loan include Nike, ShopRite and JC Penney.
Archdiocese dollars | $250M | Midtown East
Goldman Sachs provided a $250 million loan to the Archdiocese of New York for three Midtown East properties. The financing replaced a $200 million loan from JP Morgan Chase for the site of the Lotte New York Palace hotel at 455 Madison Avenue, an adjacent commercial building at 457 Madison Avenue and a retail property at 35 East 50th Street. The deal added $70 million in new debt, PincusCo reported.
Lightwell lode | $170M | Vinegar Hill
MF1 Capital provided a $170 million loan for Cheskel Schwimmer’s Brooklyn multifamily project at 218 Front Street, dubbed The Lightwell DUMBO. The fresh financing replaced $99 million in construction and gap financing from Valley National Bank to build a seven-story mixed-use development with 218 residential units. Valley National also took over a $36 million acquisition loan originated by Popular Bank. Leasing at the seven-story luxury building is underway.
Paxton payday | $145M | Downtown Brooklyn
Sumitomo Mitsui Banking Corporation provided a $145 million loan to private equity giant KKR to buy a Downtown Brooklyn rental tower. KKR and Dalan Management bought the 327-unit Paxton at 540 Fulton Street from Jenel Real Estate for $235.4 million. The 43-story building has a retail component at its base that is not part of the deal. The Paxton opened last year and includes 99 affordable units.
Dekalb dough | $132M | Downtown Brooklyn
State Street Bank provided a $131.5 million loan for Atlas Capital Group’s purchase of 80 Dekalb Avenue, one of Downtown Brooklyn’s first rental towers. The private equity firm bought the 365-unit rental tower from KKR for $202.5 million, a modest increase from the $190 million a KKR fund paid when it partnered with Dalan Management on the acquisition two years ago.
Shvo score | $120M | Midtown
The Northwind Group provided a $120 million condominium inventory loan for the unsold units at Michael Shvo’s Mandarin Oriental residences in Midtown. The debt covers the 50 luxury units at 685 Fifth Avenue still on the market. The developers of the project, which include the eponymous firm Shvo and Deutsche Finance America, are adding cash equity as part of the financing. All parties involved could also stand to benefit from a few expected closings in the next two months, including deals for units asking more than $25 million.
Queens Vista | $110M | Rego Park
Värde Partners provided a $110 million loan for RB Realty Capital’s new Vista65 rental building in Rego Park. The 186-unit project at 97-12 65th Road includes parking, 53,000 square feet of retail and 41,000 square feet of community facility space. The developer, headed by Avi Matatov, paid $12 million in 2018 to purchase the site and landed a $125 million construction loan in 2021 from Madison Realty Capital.
Read more
Commercial
New York
Tishman snags $3.5B refi for Rockefeller Center
Commercial
New York
Steven Roth kicked in $300M to salvage Bloomberg presence at 731 Lex
Development
New York
Cheskel Schwimmer plans 218-unit apartment building in Vinegar Hill
Good Ajuju | $90M | Midtown South, NoMad
Hanmi Bank loaned $90 million to Aju Hotels Investments for two Hyatt hotel properties in Manhattan. The fresh financing for the Hyatt Place at 52-56 West 36th Street in Midtown West and the Hyatt Herald Square at 30 West 31st Street in NoMad replaced an $88 million loan from Shinhan Bank.