Mortgage Observer

Steiner’s Brooklyn Residential Tower Gets $390M Construction Loan

333 Schermerhorn Street

The tower once slated to be Brooklyn’s tallest is one step closer to completion—Douglas Steiner nabbed a $390 million construction loan for The Hub at 333 Schermerhorn Street, Mortgage Observer has learned.

The residential rental tower was first announced in 2012, a time when, somehow, the site at Schermerhorn and Flatbush Avenue was still described as “gritty” by The Wall Street Journal, despite its straddling the tony Fort Greene and Boerum Hill neighborhoods. Read More

Mortgage Observer

Year in Review: 2014

Illustrations by Chris Morris.

It was another year of highs, lows and mammoth deals. While concerns about the Ebola epidemic and increasing violence abroad rattled markets in 2014, the year nonetheless brought jobs growth, rising stocks and an improved real estate market to the U.S. Of course, the specter of China’s ascendance, a double-edged sword for the American economy, is a wild card. China overtook the U.S. as the world’s largest economy in 2014, and at the same time Chinese investments in U.S. real estate reached an all-time high. Read More

Mortgage Observer

Hudson’s Bay to Refinance Saks Fifth Avenue Land With $1.25B Loan

The Saks Fifth Avenue building.

Bank of America, Morgan Stanley, Goldman Sachs Mortgage Company and The Bank of Nova Scotia are providing a $1.25 billion mortgage to Toronto-based Hudson’s Bay Company to refinance the ground below its Saks Fifth Avenue building at 611 Fifth Avenue, according to a release from the borrower.

The lenders appraised the landmark building at about $3.7 billion, based on the assumption that the entire property is net leased at an estimated fair-market rent by the luxury retailer. HBC acquired the Saks retail chain, including its 650,000-square-foot flagship store in Midtown, last year for $2.9 billion. Read More

Mortgage Observer

Silverstein, Elad Seek $500M to Build 1 West End Avenue

Larry Silverstein

Silverstein Properties and Elad Group, who are partnering on high-end residential condominium 1 West End Avenue, are now seeking about $500 million in construction funds from a consortium of banks for the project, sources told Mortgage Observer.

The syndicate will be led by Wells Fargo and Bank of America, who provided the loan the partnership used to buy the Midtown West land last year from the Carlyle Group for $160 million, one person said.  Read More

Mortgage Observer

Terra Capital and Bank of America Finance Marriott Warner Center Deal

The Marriott Warner Center.

Terra Capital Partners provided $22 million of preferred equity to Los Angeles-based Laurus Corporation to help fund the development firm’s acquisition and renovation of the Marriott Warner Center hotel in Woodland Hills, Calif., the mezzanine lender told Mortgage Observer.

Terra worked together with Bank of America, which provided $74.5 million in first mortgage financing towards the $110 million project. Both the senior loan and the preferred equity carry three-year terms with two one-year extension options. Read More

Mortgage Observer

BofA Agrees to $16B in Penalties for Bad RMBS—the Biggest Settlement in American History


Bank of America has agreed to pay over $16.6 billion to end federal and state probes into its mortgage bond sales, U.S. Attorney General Eric Holder announced in Washington, D.C. this morning. The fine—which takes the form of penalties as well as consumer relief—is the largest civil settlement with a single entity in American history.

While other banks have paid hefty sums to settle similar claims (Citigroup paid $7 billion and J.P. Morgan $13 billion), the punishment is by far the most severe meted out by the government for behavior pre-2008.  Read More

Sales Beat

Deutsche to Buy Stake in 222 Broadway: Report

222 Broadway.

Deutsche Asset & Wealth Management has agreed to acquire a 95-percent stake in 222 Broadway, Real Estate Alert reported yesterday. The deal, brokered by Eastdil Secured, values the property at approximately $500 million.

Beacon Capital and L&L Holding Company paid Bank of America $230 million for the building in 2012. Boston-based Beacon is selling its equity stake in the building while L&L will stay on as a partner and building manager, according to the report. Read More

Mortgage Observer

Larry Gagosian Closes $48M Mortgage on Chelsea Gallery

Larry Gagosian (Credit: Getty)

Larry Gagosian, one of the world’s biggest art dealers, has closed a $48.8 million mortgage from Bank of America on his storied Chelsea art gallery at 202 11th Avenue, according to public records.

The purpose of the financing was not immediately clear, but Mr. Gagosian’s home on Further Lane in East Hampton, Long Island, is listed as collateral in the mortgage documents, along with the gallery property, at 24th Street. Read More

Lease Beat

Tiger Global Management Joins Triple Digit Rent Club

Courtesy of Wikipedia

Tiger Global Management is the latest to break the triple digit threshold for commercial space in the city.

Following Ruane, Cunniff & Goldfarb Inc., which signed a deal in late May, the investment management firm will be taking a massive 32,000-square-foot space in the prized Plaza District 9 West 57th Street. The building, owned by Sheldon Solow, is known for its breathtaking views and the ability to demand close to $200 per square foot. Read More

Lease Beat

Nonprofit Relocates to 120 Wall Street


The American Institute of Chemical Engineers has signed a long-term, 16,506-square-foot lease at Silverstein Properties120 Wall Street, it was announced today.

“After a two-year search of both Midtown South and Downtown, which included inspections of over 50 properties, AIChE elected to relocate to 120 Wall Street, one of the few buildings to provide an incentive program for not-for-profits,” said Leon Manoff, vice chairman at Colliers International, who represented the tenant, in a prepared statement. Read More