Mortgage Observer

Macklowe Completes 1 Wall Street Buy With $460M in Financing

1 Wall Street.

A joint venture led by Macklowe Properties sealed its $585 million purchase of 1 Wall Street from Bank of New York Mellon with $460 million in acquisition financing serviced by Deutsche Bank Trust Company Americas, city records show.

The transactions closed on Sept. 30 and hit records this morning. Qatar National Bank is listed as the agent bank in the deal. No other lenders are named. Read More

Mortgage Observer

Bridge & Tunnel

Web_Infrastructure

While bridges and roads have been in vogue for centuries, debt funds for building them are still taking shape at barely 10 years old.

Major infrastructure projects have typically been financed publicly or by large banks. That’s because building an airport, or tunneling through a mountain, is not only a long-term project, it has historically been perceived as a high-risk undertaking. Now, a variety of factors have converged, making infrastructure debt and equity investments attractive to a broader scope of players, such as sovereign wealth funds and pension funds.  Read More

Lease Beat

Hunt Companies Relocates NYC Office to 230 Park

230 Park Avenue.

Hunt Companies, a Texas-based privately-owned investor, developer and manager of real estate assets, yesterday signed a direct lease for Deutsche Bank‘s 20,643 square feet of office space at 230 Park Avenue, Commercial Observer has learned.

At the end of the year, the firm will relocate its Hunt Mortgage Group from 100 Church Street in Lower Manhattan to the entire 19th floor at the 34-story former Helmsley Building, which is between 45th and 46th Streets. Read More

Mortgage Observer

Prodigy Network Again Proves Crowdfunding Works for Hotel Developments

A rendering of 17John.

And the crowd cheered.

Prodigy Network, a New York-based crowdfunding start-up, completed its acquisition and planned redevelopment of 17 John Street in lower Manhattan with more than $25 million of crowdfunded equity, a $56 million senior loan from Deutsche Bank and $20 million from a New York-based institutional investor, according to a company release. The deal marks the second crowdfunded Manhattan hotel project Prodigy Network has successfully taken on in less than a year.

The firm purchased the 15-story rental building at 17 John Street on August 28 for $83 million with plans to convert the property into a 23-story, 191-unit extended stay hotel to be rebranded as 17John. Prodigy Network acquired the property from 17 John Street Associates LLC, an entity managed by the New York-based development and management company Metro Loft. Read More

Mortgage Observer

High Spreads in $1B Atlantis CMBS Issuance

Atlantis.

The $1 billion Atlantis CMBS offering, collateralized by a single, 245-acre, 2,917-room resort property located in Paradise Island, Bahamas, exhibits higher than normal spreads for its fixed-rate AAA-class certificates, due in part to corresponding risk, Mortgage Observer Weekly has learned.

BREF ONE LLC’s Series A, a fund affiliated with a subsidiary of Brookfield Asset Management, sponsored the $1 billion mortgage for the resort, according to a Standard & Poor’s pre-sales report, released Aug. 4. The loan, divided into a $650 million fixed-rate and $350 million floating-rate component, was provided by Deutsche BankMorgan Stanley and Citigroup. Read More

Mortgage Observer

Meadow Partners Acquires Former Menachem Stark Property in Williamsburg With M&T Loan

100 South 4th Street.

Keeping true to its “relationship lender” motto, M&T Bank provided a $36 million loan to help fund a recent Meadow Partners acquisition, taking a bet on a beleaguered multifamily loft building in Williamsburg, Brooklyn, sources familiar with the negotiations told Mortgage Observer.

The Midtown-based investment firm acquired the rental property at 100 South 4th Street, which was developed by the late Menachem Stark and his partner Israel Perlmutter for $52 million, on Aug. 7, taking it out of a five-year bankruptcy process. Read More

Mortgage Observer

Greystone Hires Deutsche Bank Veteran

Nikhil Kanodia.

Deutsche Bank veteran Nikhil Kanodia has joined the New York-based multifamily and healthcare lender Greystone as a managing director, Mortgage Observer has first learned.

Mr. Kanodia will report to Mordecai Rosenberg in Greystone’s New York office with a focus on managing client relationships, originating new loans and identifying opportunities for new deals with real estate owners. Read More

Mortgage Observer

Meridian Secures $142M Loan For Southfield Town Center Buy

Southfield Town Center

Commercial developer, owner and manager 601 West Companies received a $142 million loan from Deutsche Bank to buy an office complex in Southfield, Mich., Mortgage Observer has first learned. The 10-year loan, which will be securitized, a source familiar with the transaction said, was for the $177.5 million purchase of Southfield Town Center, a 2.15-million square-foot, mixed-use center in the Detroit metropolitan area. Deutsche declined to comment. Read More

Mortgage Observer

Deutsche Bank Originates $185 Million CMBS Loan for Luxury Manhattan Hotel

InterContinental New York Barclay at 111 East 48th Street

Deutsche Bank provided acquisition financing to Qatar’s Constellation Hotel Holdings for its 80 percent stake in the InterContinental New York Barclay on Manhattan’s East Side from InterContinental Hotels Group.

The global banking and financial services company originated $185 million in debt with a total commitment of $240 million, a person familiar with the transaction told Mortgage Observer on background. The $55 million of additional proceeds will be funded for upgrades on the hotel over the term of the loan, which closed on March 31, that person said. Read More

MO's Top 50

Jonathan Pollack Takes Top Spot On This Year’s 50 Most Important People in CREF

Jonathan Pollack

Deutsche Bank’s CMBS guru and real estate financing head honcho, Jonathan Pollack, took the No. 1 spot on this year’s 50 Most Important People list due to several colossal deals and his team’s top ranking in the global and U.S. securitized debt markets.

While the German global banking and financial services company reported an unexpected overall loss of 965 million euros, or $1.3 billion, for the fourth quarter of 2013, its real estate debt operations have continued to show clear gains. Read More

Financing

Gary Barnett Seeks $1B Loan from Chinese Bank

Gary Barnett

Gary Barnett, founder of Extell Development, is seeking approximately $1 billion in financing from Export-Import Bank of China for the planned condominium development at 225 West 57th Street, The Wall Street Journal reported earlier today.

If the deal is closed, it would likely be the largest loan for a U.S. real estate construction project since the market downturn, according to the Journal report. The project, as designed, would be the largest residential building in the United States, rising just a block away from Extell’s soon to be completed One57 residential tower.  Last year, Nordstrom agreed to anchor the development with its first New York flagship location. Read More

Food & Drink

The Four Seasons Restaurant Faces Rent Hike

Four Seasons Grill Room 2

The Four Seasons Restaurant, home of the “power lunch,” is facing a six-fold rent increase when its current lease expires in 2016, The Huffington Post reported yesterday. The iconic New York eatery, which currently pays $19.74 per square foot, could be looking at rents of $125 per square foot for its 29,476-square-foot space inside the Seagram Building at 375 Park Avenue.

Documents viewed by the Huff Post indicate that as part of the owners’ $782.8 million mortgage deal, financed jointly by Citigroup and Deutsche Bank and being marketed to investors via commercial mortgage backed securities, bankers expect management at the property to begin charging the The Four Seasons market rents, which according to the documents are determined to be $125 per square foot. Read More