Accounting Issue 2014

The Rise of the LLC [Updated]

A rendering of 610 Lexington Avenue

Last week, the developer RFR Holding broke ground on 610 Lexington Avenue, a condominium tower that will be next to the Seagram Building. RFR partnered with China Vanke, China’s biggest public developer, which took a stake in its first New York development.

RFR also filed a $180 million deed that transferred the property from 610 Lexington Avenue LLC to 610 Lexington Property LLC. Read More

Mortgage Observer

Do We Really Have To Use A Delaware LLC?

Joshua Stein

Substantial commercial real estate loans, especially those destined for securitization, usually require the borrower to form a single purpose Delaware limited liability company to own the property. The requirement has become so prevalent that it’s just part of the territory. But why can’t we use a New York LLC? What’s so bad about New York?

Read More

Comebacks

Stirrings at Two Haunted Assets

Life is stirring again at the ghostly Drake Hotel site.

With financing for development sites still virtually frozen, CIM Group has received a $30 million mortgage from Pacific Northwestern Bank on the former home of the Gilded Age hotel, according to public records.

As The Observer reported in February, the spot at Park Avenue and 57th Street is likely the only existing development Read More

Legalized Gambling

Met’s Original Home Gets $150 M. in Financing

A boutique office building at Fifth Avenue and 53rd Street, the Corinthian original home of the Metropolitan Museum, has secured $150 million in financing.

The influx of capital at 681 Fifth Avenue, a prime retail spot whose tenants include Tommy Hilfiger, will be used to pay off any outstanding debt and to fund additional pre-built floors Read More

Money Matters

Royal York’s $25 M. Financing

One of the Upper East Side’s first condo-ops has secured a $24 million senior underlying co-op mortgage and a $1 million unsecured line of credit

The Royal York, near York Avenue between 63rd and 64th streets, has received a seven-year financing with a fixed-rate of 3.96 percent. The loan, provided by a local savings bank, Read More

Money Matters

Wannabe Luxe Development Site On Sale Near U.N.

Loans on a stalled development site are being sold to investors with an appetite for four slices of the United Nations submarket.

The current owners had considered moving air rights from the two 45th Street properties to the two on 44th Street, offering nearly 75,000 square feet of potential development in a prime area for hotels Read More

‘Babes in the Woods’ Need Not Apply

When Ashish Parikh went looking for lenders late last year to refinance the nearly $30 million in debt that his company, Hersha Hospitality, assumed when it purchased the Hilton Garden Inn in Tribeca, he received some level of interest from 30 lenders, and six term sheets.

“If this was 2006 or 2007, Read More