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

Mortgage Observer

Wells Fargo Syndicates Westin Diplomat Loan

Westin Diplomat Resort & Spa.

Wells Fargo has syndicated a $260 million senior loan it provided to Thayer Lodging Group Fund VI and Brookfield Asset Management for a joint-venture acquisition and renovation of the Westin Diplomat Resort & Spa, in Hollywood, Fla., Mortgage Observer has exclusively learned.

Wells Fargo completed the syndication this week with three participating lenders, which the San Francisco-based bank declined to name. Michael Brown of the bank’s real estate syndication team under Wells Fargo Securities led the transaction. 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

Q&A: Christopher Jordan, Head of Wells Fargo’s Hospitality Finance Group

Christopher Jordan.

Mr. Jordan spoke with Mortgage Observer in September from his office in Washington, D.C. He told MO about the inception of Wells Fargo’s hospitality lending arm, where the market may be heading as 2015 approaches and two newsworthy deals his team recently closed. The 53-year-old Maryland native received his bachelor’s degree in 1983 and his Master’s of Business Administration in 2005, both from Duke University. He joined Wells Fargo in 1988. Read More

Mortgage Observer

Wells Fargo Names Horatio Jones Head of Multifamily in South Florida

Jones Horatio.

Wells Fargo has appointed Horatio Jones, one of its commercial real estate loan originators, to lead the bank’s South Florida office for multifamily GSE lending, Mortgage Observer has exclusively learned.

Mr. Jones, who is based in Fort Lauderdale, brings more than seven years of commercial real estate lending experience to the new position, according to a Wells Fargo spokesperson. Read More

Mortgage Observer

Silverstein Properties Refinances River Place With $230M Wells Fargo Loan

River Place.

Wells Fargo provided a $230 million Fannie Mae loan to Silverstein Properties to refinance its River Place rental tower at 650 West 42nd Street on the corner of 12th Avenue, the borrower confirmed to Mortgage Observer.

The seven-year interest-only loan carries a rate below 3.5 percent and replaces existing securitized debt on the property that is nearing maturity, Silverstein Properties Chief Executive Officer Marty Burger said. Ackman-Ziff served as a broker on the transaction. Read More