The ten largest real estate loans in Manhattan in August totaled $ 3.2 billion, nearly triple the $ 1.2 billion in July.
A construction loan for Terminal Warehouse in Chelsea topped The Real Deal’s loan list, while interest rates close to zero put building owners in a position to roll over debt rather than sell assets at a discount.
Office buildings made up the majority of large refinance loans last month, though a modular hotel on the Lower East Side and a residential building in Hell’s Kitchen also took out loans.
These are the largest real estate loans in the municipality in August:
1. Whopper Warehouse | $ 1.25 billion
L&L Holding Company and Columbia Property Trust closed a $ 1.25 billion loan for the 1.3 million-square-foot Terminal Warehouse on 11th Avenue between West 27th and 28th streets in Chelsea. Blackstone, Goldman Sachs and KKR loaned the senior $ 731 million portionwhile Oaktree Capital Management and Paramount Group lent on the mezzanine.
2. Love that low interest | $ 860 million
Paramount Group obtained $ 860 million from Wells Fargo and Morgan Stanley to refinance outstanding debt due in November at 1301 Sixth Avenue in Midtown. Senior loan debt amounted to $ 710 million. Each lender will contribute an intermediate loan of $ 75 million. Paramount lost tenant Barclays, which had leased a third of the building, in 2020.
3. A Refi crosses it | $ 235 million
River Place by Silverstein Properties, a luxury rental development in Hell’s Kitchen, received a $ 235 million Greystone Loan Servicing bridge loan to replace a $ 230 million Fannie Mae loan from Wells Fargo in 2014. Silverstein built the 41-story, 921-unit rental building at 650 West 42nd Street near the Hudson River in 2000. Two-Bedroom units currently cost around $ 6,500.
4. CMBS I | $ 215 million
Bobby Zar’s ZG Capital Partners secured another refinance at 1450 Broadway. The Zar Group subsidiary organized a $ 215 million Bank of Montreal commercial mortgage-backed securities loan for a term of five years and interest only. The loan replaces a 2018 refinance from Goldman Sachs of $ 170 million, which replaced a $ 114 million loan from UBS Real Estate Securities. ZG Capital purchased the 42-story property from a Moinian Group, Chetrit Group and Edward J. Minskoff Equities company in 2011 for $ 204 million.
5. Old but good | $ 148 million
LH Charney Associates secured a $ 148 million refinance loan package for a 387,000-square-foot office building at 1410 Broadway. Pacific Coast Capital Partners provided the debt. Manhattan office owners, especially those with older buildings, are under pressure to upgrade and attract tenants. LH Charney, who has owned the property for four decades, is no exception.
6. Home Improvement Honey | $ 134 million
Gazit Horizons, a subsidiary of Israeli investment firm Gazit Globe, refinanced its 120,000-square-foot retail property at 410 East 61st Street with $ 134.4 million in bonds, secured by a 20-year lease with home improvement giant Home Depot. Mesirow Financial issued and placed the bonds. The Home Depot lease, signed last October, was the largest in Manhattan by size and rent in 2020.
7. CMBS Me too | $ 125 million
David Werner insured $ 125 million in CMBS financing – debt owned by investors rather than a bank – at 235 East 42nd Street in Midtown. Werner took over the Pfizer lease as part of a $ 360 million deal in 2018 that included the fee interest at 219 East 42nd. The loan replaces $ 125 million from Morgan Stanley. Pfizer will relocate its headquarters to Tishman Speyer’s Spiral in Hudson Yards.
8. Condop costs | $ 100 million
CBSK Ironstate and Arel Capital, the developers of 1228 Madison Avenue, obtained a $ 100 million refinance loan from Madison Realty Capital. The Robert AM Stern-designed Upper East Side condo development financing included $ 70 million in senior financing to replace a $ 65 million construction loan provided by Deutsche Bank in 2019.
9. Modular mathematics | $ 83 million
CitizenM hotels obtained a $ 82.5 million JPMorgan Chase refinance loan at their modular hotel at 189 Bowery. The loan replaces $ 82.5 million in debt that HBSC issued in 2018 after construction was completed.
10. Boutique Soho | $ 81 million
Boston-based AEW Capital Management landed $ 81 million in senior loan financing, provided by Ares Management, for the purchase of a semi-new and semi-renovated boutique office building in Soho for $ 86.2 million. AEW purchased the 98,400-square-foot building at 163 Varick Street, also known as 60 Charlton Street, from APF Properties in July.