Finance

Sutton and GGP Land $1.25B Loan from Four Banking Giants for Crown Purchase

The Crown Building (Winter Properties).

Billionaire New York developer Jeff Sutton and Chicago-based General Growth Properties closed on their $1.78 billion acquisition of the Crown Building at 730 Fifth Avenue with a $1.25 billion mortgage provided by Deutsche Bank, Morgan Stanley‎, Goldman Sachs and Citigroup, Commercial Observer has learned.

The loan closed last Friday. Oxford Finance and another, unnamed, mezzanine lender grabbed junior portions of the enormous debt deal, a source with intimate knowledge of the transaction said. Read More

Mortgage Observer

Mack Real Estate Credit Hires Two Industry Players for Origination Roles

Richard Mack.

Mack Real Estate Credit Strategies, the new direct lending platform headed by Richard Mack and former Blackstone Group executive Peter Sotoloff, has hired two more people to join its ranks, Mortgage Observer can exclusively report.

Kevin Cullinan of J.P. Morgan Chase & Co. joined MRECS as a capital markets and mezzanine loan originator, one person familiar with the matter said on the condition of anonymity. MCRES, an affiliate of Mack Real Estate Group, also picked up an unnamed employee from Deutsche Bank’s special situations group, according to another person in the know. Read More

Mortgage Observer

Bank of China and Deutsche Bank to Loan $600M for Miami Design District Development

Miami Design District's Fujimoto Courtyard.

A trio of lenders—Deutsche BankBank of China and the French banking network Crédit Agricole—is close to wrapping up the senior portion of a nearly $600 million construction loan for a retail mega-development in Miami, Mortgage Observer has learned.

The loan, to a joint venture led by Miami-based developer Craig Robins and the global real estate fund L Real Estate, is due to close in the upcoming weeks, a person familiar with the matter said on the condition of anonymity. Chicago-based General Growth Properties and New York-based Ashkenazy Acquisition are said to own minority interests in the venture. Read More

Mortgage Observer

Sapir Taps Column Financial for Mondrian Soho Purchase

Mondrian Soho Hotel.

A group of investors led by Alex Sapir of the Sapir Organization took a $180 million CMBS loan from Column Financial to acquire the 263-room Mondrian Soho hotel at 9 Crosby Street in Lower Manhattan, public records show.

The billionaire real estate mogul and his partners purchased the financially troubled five-star hotel from Deutsche Bank at a foreclosure auction in January, as previously reported. Read More

Lease Beat

Mudrick Capital Moves on Madison Avenue

527 Madison Avenue.

Mudrick Capital, an SEC-registered investment advisory firm, has signed an 11-year lease for 12,400 square feet on the sixth floor of Mitsui Fudosan America’s 527 Madison Avenue between East 53rd and East 54th Streets, Commercial Observer has learned.

Built in 1986, the Class A commercial property at 527 Madison Avenue is 26 stories and is comprised of 236,000 square feet. Mitsui Fudosan America acquired the building in 2008 from Deutsche Bank for $225 million, according to CoStar. Read More

Mortgage Observer

Deutsche Bank Finances Related High Line Acquisition

131 10th Avenue.

The Related Companies has closed on the acquisition of two sites along the High Line for the firm’s latest Hudson Yards development with a $125 million loan from Deutsche Bank, city records show.

Related acquired the properties at 511-525 West 18th Street, a low-rise garage west of the High Line, and 131 10th Avenue, a parking lot that occupies the full block between West 18th and 19th Streets, for $205 million. Read More

Mortgage Observer

Silverstein Recaps 1177 Avenue of the Americas

1177 Avenue of the Americas (photo courtesy of CoStar)

Silverstein Properties recapitalized Midtown office property 1177 Avenue of the Americas, taking a $360 million loan from Deutsche Bank and CCRE, records filed with the city yesterday show.

A spokesperson for the Silverstein confirmed the deal, but declined to comment on the interest rate. Prior reports say that the developer was set to nab a “sub 3 percent,” rate, however. Read More

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 Corp. 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.

M&T Bank lent $36 million 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