Manhattan’s biggest home loans of October 2021
Manhattan’s 10 biggest home loans on record in October totaled $ 2.1 billion, about double the September total, but below August’s $ 3.2 billion waterline.
The October loans included a cash refinance, acquisition loans for Black Rock in Midtown and the Hudson Yards Observation Deck, and financing that helped the Chetrits escape foreclosure in Midtown East.
Here are the borough’s biggest mortgage loans in October:
1. CMBS cash cow | $ 450 million
Larry Silverstein and a California pension fund will refinance 1177 Sixth Avenue with a $ 450 million CMBS loan, the owners of which will draw about $ 78 million in cash. The loan was led by Deutsche Bank subsidiary DBR Investments and Wells Fargo and comes just months after Silverstein and CalSTRS bought out former partner UBS’s stake in the Midtown office skyscraper as part of a deal that valued the building at $ 860 million. The loan will repay $ 360 million of previously securitized debt.
2. Safe harbor | $ 420 million
Harbor Group International has secured a $ 420 million senior loan from Deutsche Bank and Goldman Sachs to finance its $ 760 million purchase of 51 West 52nd Street from ViacomCBS. Known as Black Rock, the 1965 building was designed by Eero Saarinen and had never been sold before. Funding for the transaction totaled $ 558 million in CMBS loans, including $ 138 million from Brookfield Real Estate Finance in a mezzanine position.
3. Loan with sight | $ 391 million
Private equity firm KKR has secured $ 391 million from the Carlyle Group to buy a controlling stake in the observation deck at 30 Hudson Yards – the tallest outdoor patio in the Western Hemisphere – for $ 509 million. KKR bought the space, called Edge, from related companies. Tourist attractions have struggled: At the Empire State Building, which relied on visitors to its observation center, revenue drops have been significant.
4. Close shave | $ 220 million
Jacob Chetrit has refinanced his half-empty office building at 850 Third Avenue in part with a $ 220 million senior loan from private investment firm HPS Investment Partners. Chetrit fell behind on her $ 177 million mortgage and faced foreclosure after missing the loan’s due date, but new funding from HPS totaling $ 320 million allowed her to pay off the loan. Chetrit Organization bought the 21-story Midtown East building for $ 422 million in 2019 from the debt-laden Chinese group HNA, which was seeking to divest itself of assets.
5. Green on green | $ 201 million
Spear Street Capital landed $ 201 million from Bank of America for its purchase of 635-641 Sixth Avenue from SL Green Realty for $ 325 million. SL Green outfitted the building with a new lobby, elevators and a penthouse with rooftop event space in 2015. The 267,000 square foot property was 94% leased in May. The largest tenant, software company Infor, occupies nearly half of the building and renewed its 90,000 square foot lease this year.
6. Mystery Shopper & Blackstone | $ 115 million
Blackstone Real Estate Debt Strategies has funded the purchase by an undisclosed buyer of a hotel at 350 West 39th Street in the Garment District with a loan of $ 115 million. The hotel was owned by king of mid-range hotels Sam Chang and sold for $ 166 million. The identity of the buyer is protected by a limited liability company. Chang has sold many hotels since the pandemic plagued the city of tourists and business travelers.
7. Burkle bucks | $ 97 million
Billionaire Ron Burkle’s Yucaipa Companies has secured a $ 97 million bridge loan from iBorrow to buy the former U.S. Stock Exchange headquarters at 86 Trinity Place in the Financial District for $ 155 million. Burkle is seeking a construction loan to renovate and operate the art deco building as Soho House, a chain of private clubs that Burkle partially owns, according to a statement from iBorrow.
8. Apollonian loan | $ 97 million
A&E Real Estate consolidated debt on its newly acquired Sutton Place apartment building with a $ 97 million loan from Apollo Global Real Estate Management. The real deal reported in April that A&E had purchased the building from SL Green for $ 133.5 million; the contract was closed in October, the Commercial Observer reported. SL Green marketed its 41 percent stake in the building with 400 East 58th Street nearby last year. A&E purchased the East 58th Street building for $ 62 million in September 2020.
9. Sayonara MUFG | $ 84 million
Apple Savings Bank has agreed to lend $ 84 million to Rockefeller Center North at 1271 Sixth Avenue, replacing debt held by Japanese lender MUFG Bank. Insurance giant AIG gave the building a boost last year by announcing it would move its global headquarters there. MUFG, Japan’s largest lender, recently pulled out of US retail banking in an $ 8 billion sale of MUFG Union Bank to Minneapolis-based US Bancorp, Reuters reported .
10. Good, good, Wells | $ 75 million
Wells Fargo has loaned Global Holdings Management Group $ 75 million for its 24-story residential project at 1841 Broadway. Foundation work began at the site in September, Yimby reported. The loan replaces debt held by HSBC. Global Holdings filed plans for the new building in 2018. In the past, it has supported condos developed by the Zeckendorf family, including at 15 Central Park West, 520 Park Avenue, and 50 United Nations Plaza.