Angelo Gordon, We’re Group score $350M refi for Long Island offices

Loan proceeds from Barclays and Citigroup will allow $98 million cash-out

Tri-State /
Jun.June 18, 2021 12:00 PM
Josh Baumgarten (left) and Adam Schwartz, co-CEOs and co-Chief Investment Officers of Angelo Gordon with 2 Huntington Quadrangle, Melville, 6 and 8 Corporate Center Drive in Melville (Angelo Gordon, We're Group)

Josh Baumgarten (left) and Adam Schwartz, co-CEOs and co-Chief Investment Officers of Angelo Gordon with 2 Huntington Quadrangle, Melville, 6 and 8 Corporate Center Drive in Melville (Angelo Gordon, We’re Group)

A joint venture between alternative investment firm Angelo Gordon and local developer We’re Group landed a $350 million floating rate loan for 16 Long Island office properties.

Barclays and Citigroup provided the loan, which has a two-year term with three one-year extension options, according to the commercial mortgage rating report by DBRS Morningstar. Commercial Observer first reported the deal.

In November 2019, Angelo Gordon acquired a 95.5 percent leasehold interest in the 2-million-square-foot portfolio from We’re Group, which developed and had managed the buildings for decades.

The We’re Group kept the remaining 4.5 percent interest and formed the joint venture with Angelo Gordon.

A majority of the buildings in the portfolio are located in New Hyde Park in Nassau County and Melville in Suffolk County. Among the biggest properties are a 400,000-square-foot complex at 2 Huntington Quadrangle and a 206,000-square-foot campus at 6 and 8 Corporate Center Drive in Melville.

The new loan’s proceeds will be used to pay back an existing mortgage of about $235 million while returning about $98 million in equity to the joint venture, according to DBRS Morningstar.

We’re Group principal Tony Fromer said that part of the cash will go right back into the portfolio for the upkeep and tenant improvements.

“It takes a lot to keep these buildings filled,” he said. “You need to have a lot of capital available to keep these buildings well leased and keep them looking good to attract new tenants.”

The portfolio is currently 86.6 percent occupied, with tenants including ProHealth Corp, Northwell Health and Newsday.






    Related Articles

    arrow_forward_ios
    (Getty)
    Homeowners declare final victory in fight over Amagansett “Truck Beach”
    Homeowners declare final victory in fight over Amagansett “Truck Beach”
    Tritec Principal Robert Coughlan with the project (Tritec)
    Tritec lands $173M for Bay Shore Residences
    Tritec lands $173M for Bay Shore Residences
    The office space (JLL)
    Amazon plans last-mile distribution center in Hauppauge
    Amazon plans last-mile distribution center in Hauppauge
    Trump Plaza New Rochelle at 175 Huguenot Street and Donald Trump (Getty, Anthony22/Wikimedia)
    Trump Plaza New Rochelle dumps Trump Org as property manager
    Trump Plaza New Rochelle dumps Trump Org as property manager
    Cedar Realty Trust President and CEO Bruce Schanzer (Cedar)
    Cedar Realty Trust considering sale
    Cedar Realty Trust considering sale
    The New Hyde Park Target is going to be adding a level (Google Maps)
    Target’s unopened New Hyde Park store already growing
    Target’s unopened New Hyde Park store already growing
    Jamesport Vineyards founder Ronald Goerler Sr. dies
    Jamesport Vineyards founder Ronald Goerler Sr. dies
    Jamesport Vineyards founder Ronald Goerler Sr. dies
    (iStock)
    Fewer than 1 in 4 Long Islanders behind on rent has applied for relief
    Fewer than 1 in 4 Long Islanders behind on rent has applied for relief
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...