The Lobby

Wells Fargo Vet Tapped to Lead CRE Venture

Adam Davis.

Adam Davis will head four of Wells Fargo’s commercial real estate businesses, the bank announced.

The 14-year veteran of the company will oversee Commercial Real Estate Capital Markets & Finance, Corporate Net Lease, Real Estate Capital Markets Organizations and Commercial Mortgaging Servicing, according to Wells Fargo. Read More

Finance

Attorneys Reveal How Complicated Offshore Finance Deals Can Become

Illustration by Lorenzo Gritti.

As the Notorious B.I.G. and Puff Daddy cautioned in the mid-1990s, “Mo’ money, mo’ problems.” And the New York rapper and record producer hadn’t even factored foreign laws, overseas real estate, and global debt into the mix.

Institutional lenders have taken careful steps to protect themselves against developments and acquisitions gone wrong, especially when dealing with offshore guarantors. The many safeguards include international treaties, notarization verifications and detailed provisions in every loan document. Read More

Finance

Singer & Bassuk Secures Fannie Mae Loan for West Village Rental Buildings

110-114 Horatio Street.

The Singer & Bassuk Organization arranged a $60 million Fannie Mae loan on behalf of Rockrose Development Corp. to refinance 110-114 Horatio Street in the West Village. Wells Fargo is the Delegated Underwriting and Servicing provider in the deal, according to the brokerage firm.

The 10-year, fixed-rate loan replaces existing debt on the property, including a $31 million CMBS loan provided by Morgan Stanley in 2005, also brokered by Singer & Bassuk. Read More

Finance

U.S. Bank Hires Wells Fargo Exec Rex Rudy to Run CRE Division

Rex Rudy.

Wells Fargo veteran Rex Rudy has joined U.S. Bank to lead its commercial real estate division out of Charlotte, N.C., according to an announcement from the national commercial bank. He succeeds Joe Hoesley, who retired in March.

Mr. Rudy has more than 20 years of experience in the industry. He took over as managing director and group head of REIT finance at Wells Fargo in November 2011 after serving as managing director of real estate syndicated finance at Wells Fargo Securities. Read More

Finance

Meridian Brokers $60M Wells Fargo Loan for 85 Fifth Avenue Retail Co-Op Buy

85 Fifth Avenue.

Wells Fargo originated a $60 million loan to a partnership between Jeff Sutton’s Wharton Properties, General Growth Properties and Maguire Capital for the purchase of a retail cooperative property at 85 Fifth Avenue in Union Square, Commercial Observer has learned.

The three-year loan, negotiated by Meridian Capital Group Executive Vice President Aaron Birnbaum and Vice President Tal Savariego, carries a Libor-based floating interest rate as well as loan extension options, according to the brokers. Read More

Finance

Blackstone and Wells Fargo Buy GE Real Estate Assets for $23B

General Electric sign.

Blackstone Group and Wells Fargo have closed on their joint purchase of General Electric‘s real estate debt and equity assets in a deal valued at roughly $23 billion, the two companies announced today. The transaction comes as GE looks to shed its banking operations over the next two years and return to its industrial core business.

The deal also marks the biggest real estate transaction since the beginning of the financial crisis and one of the largest deals ever for Blackstone, which plans to acquire more than half of the assets. Read More

Mortgage Observer

Wells Fargo Sets Defeasance Record

Wells Fargo.

With the defeasance sector heating back up, as more borrowers look to replace their CMBS loans with Treasuries to lock in low interest rates, Wells Fargo set an eyebrow-raising record last year.

The banking giant, which ranks as the nation’s largest commercial loan servicer, defeased $11.8 billion in securitized debt in 2014, equal to the amount of total defeasance throughout the U.S. the previous year, a Wells Fargo executive told Mortgage Observer. Read More

Mortgage Observer

Rockpoint Acquires UES High Rise for $218M With Wells Fargo Loan

The Wimbledon at 200 East 82nd Street.

Rockpoint Group acquired The Wimbledon, a 28-story apartment high rise on the Upper East Side, for $218 million, or $977,578 per unit, with a $115 million loan from Wells Fargo, city records show.

The Boston-based real estate investment firm purchased the luxury rental building at 200 East 82nd Street from J.P. Morgan Investment Management in a deal brokered by Darcy Stacom and Paul Liebowitz of CBRE. Read More

Mortgage Observer

Wells Fargo Finances Calif. Outlet Center Buy Out of Special Servicing

Tulare Outlet Center.

Wells Fargo lent $31 million to New York-based Garrison Investment Group to help fund the acquisition of a California outlet center, sources familiar with the transaction told Mortgage Observer. The center had been in special servicing since 2009.

Garrison acquired the 55-store center, Tulare Outlet Center at 1407 Retherford Street in Tulare, Calif., from CMBS special servicer C-III Asset Management this month for an undisclosed price. Read More

Mortgage Observer

TF Cornerstone Closes Two Agency Loans Totaling $365M

95 Horatio Street.

The Singer & Bassuk Organization advised TF Cornerstone in the arrangement of two permanent agency loans totaling $365 million for the New York developer’s rental apartment buildings at 95 Horatio Street in the Meatpacking District and 4610 Center Boulevard in Long Island City, Mortgage Observer has first learned.

TF Cornerstone secured a $165 million Freddie Mac loan through Capital One for its Horatio Street property, said Jeremy Shell, the company’s head of finance and acquisitions, and Andrew Singer, chairman and chief executive officer of Singer & Bassuk. Read More

Mortgage Observer

TF Cornerstone Scores Construction Loan for 606 West 57th Street

606 West 57th Street rendering.

TF Cornerstone landed a $384 million construction loan for its 80/20 rental development at 606 West 57th Street from a consortium of banks led by Wells Fargo, Mortgage Observer can exclusively report.

Buffalo, N.Y.-based M&T Bank and Germany-based Helaba also participated in the deal, with each lender taking about one third of the loan, sources said. The loan carries a term of four years plus extension options and is funded through 80/20 bond financing from the state Housing Finance Agency, according to two people privy to the negotiations. The three banks declined to comment. Read More

Mortgage Observer

Wells Fargo and BNY Mellon Lead $412M Loan for Durst West Side Rental

A rendering of 625 West 57th Street. (Durst Fetner)

The Durst Organization scored a $411.5 million construction loan from a group of lenders led by Wells Fargo and Bank of New York Mellon Corp. to finance the development of its tetrahedron-shaped rental tower at 625 West 57th Street, sources familiar with the deal told Mortgage Observer.

The loan, which closed last week, carries a term of four years with a one-year extension option and “smoking interest rates,” one person familiar with the transaction said on the condition of anonymity. Read More

Lease Beat

Wells Fargo Subleases For New ATMs in Times Square Station [Updated]

Wells Fargo ATM

Wells Fargo bank will open its second ATM area in the Metropolitan Transportation Authority‘s Times Square-42nd Street Station through a 485-square-foot sublease until August 2017 for a retail storefront beneath Eighth Avenue near West 44th Street that will net the agency an annual rent of $24,400, MTA officials said.

The bank with over 12,000 ATM locations nationwide and an existing one elsewhere in the bustling station in a corridor near West 42nd Street and Broadway, according to the firm’s website, subleased the space from One Stop Music, a music, DVD, video games, luggage, posters and electronics store that moved to a 600-square-foot space across the hall, said store owner Adam Chowdury. Read More