TF Cornerstone has tapped The Singer & Bassuk Organization to arrange $140 million in permanent financing for the developer’s 12-story office property at 387 Park Avenue South, Mortgage Observer has learned.
The New York-based development firm and intermediary are seeking a ten-year or longer-term fixed-rate loan to replace existing debt from an institutional lender, said Andrew Singer, chairman and CEO of Singer & Bassuk. The two companies expect to choose a lender within 30 days and to close the deal within the next 60 to 90 days.
Citi Habitats has moved its corporate headquarters a few blocks north of its current location to 387 Park Avenue South.
The residential brokerage firm has taken roughly 19,000 square feet on the fourth floor of the building as part of a 10-year lease, Commercial Observer has learned. They also took about 500 square feet of additional space for storage in the basement at the 12-story, pre-war office property between East 27th and East 28th Streets.
Criteo, a software and online advertising firm, has signed a lease for 40,000 square feet at the TF Cornerstone-owned 387 Park Avenue South between East 27th and East 28th Streets.
As part of its 10-year lease, the TAMI tenant will take the 11th and 12th floors of the 13-story property and has also secured a Read More
Late last year, when the education publishing company Scholastic offered up about 60,000 square feet of sublease space at the top of the Soho office building 568 Broadway, the firm quickly found it wouldn’t be difficult to fill.
Within weeks, a host of tenants were competing for it, including several tech firms, one of the most active sectors of the leasing market in Manhattan right now. Tumblr, foursquare and AppNexus, all well-known names in the industry, moved to the front of the pack.
On the face of it, such a decision would seem easy. Of the three, only AppNexus, a firm that specializes in online advertising and is backed by the software giant Microsoft, is known to be profitable. But in a tech boom in which riches don’t always flow from the most likely sources, the deal for the space took a different turn.
The competition soon boiled down not to AppNexus but to Tumblr and foursquare, two companies that have become top brands in the new internet boom and have raised tens of millions of dollars in venture capital between them, but have yet to find income-producing platforms for their services.
TF Cornerstone is planning a bold makeover of 387 Park Avenue South, leasing executives for the building say.
The company, which owns several prominent office properties in the city including Carnegie Hall Tower, will build an outdoor area and conference facility on the 12-story building’s roof and clad its lower floors in a new glass facade. A new lobby and elevators will also be installed as part of the project.
TF Cornerstone is readying plans to undertake a major renovation of 387 Park Avenue South, a roughly 215,000-square-foot office building the company owns at the edge of booming Midtown South.
Matthew Leon, a top leasing executive at Newmark Grubb Knight Frank who oversees leasing of TF Cornerstone’s Manhattan portfolio of space, said that over $10 million will likely be spent in order to upgrade the building.