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Mortgage Beat

Mortgage Beat

The (Improving) State of Construction Lending

Sam Chandan.

Construction lending has registered a marked improvement over the last six months, in top-rung metro areas and increasingly in secondary markets as well. During the financial crisis and for most of the period that has followed, development financing has been reserved for the most rarefied opportunities. With the exception of the apartment sector, the search for new projects has generally brought us back to New York and the other cardinal metros. Eager developers chancing upon opportunities elsewhere have found themselves hamstrung by hesitancy among potential anchors, reluctant banks and skeptical regulators. That is changing. Read More

Mortgage Beat

Union Bank to Acquire $3.7 B. CRE Portfolio from PB Capital with a 3 Percent Premium

Masashi Oka

Union Bank, a wholly-owned subsidiary of The Bank of Tokyo-Mitsubishi UFJ, has reached an agreement with Deutsche Bank to acquire PB Capital Corporation’s institutional commercial real estate lending portfolio and platform. It will pay a 3 percent premium above the over $3.7 billion face amount of PB’s commercial mortgage portfolio, sources told The Mortgage Observer.

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Mortgage Beat

$310 M. 120 Broadway CMBS Loan Closes

120 Broadway.

Mortgage Observer Weekly  has learned that a $310 million CMBS loan on 120 Broadway closed last week, likely at a rate in the mid-2 percent range. Wells Fargo originated the loan.

A previous CMBS loan on the building had an outstanding balance of $215 million. Originated back in May of 2006, it was set to mature in June 2013, according to data from Trepp. Read More

Mortgage Beat

Greenwich Multifamily Properties Refinanced

Greenwich Place.

HFF has arranged $96 million to refinance two multifamily properties in the New York City metro area. The properties—located in Greenwich, Conn.—include a total of 396 apartment units. The financing was arranged on behalf of LCOR, which was acquired by the California State Teachers’ Retirement System earlier this year. Read More

Mortgage Beat

LIC’s Wyndham Garden Hotel Refinanced with $9.5 M. Loan

Wyndham Garden Hotel.

Johnson Capital has arranged a $9.5 million loan for a Long Island City hotel at 44-29 9th Street. The loan closed on October 5.

The financing will replace two land and bridge loans on the property, the Wyndham Garden Hotel. It was provided by Texas-based Hall Structured Finance, which earlier provided $21 million for the construction of a 137-key Holiday Inn Hotel—also in Long Island City. Mike Jaynes, president of Hall Structured Finance, told The Mortgage Observer that the company was paid off on that loan early in the year—making the Wyndham its second opportunity. Read More

Mortgage Beat

Investor Group Acquires Times Square Development Site for $430 Million

701 Seventh Avenue.

A venture between the Witkoff Group, Maefield Development, Infinity Urban Century–and New Valley, an investment unit of Vector Group–completed the $430 million acquisition of a development site at 701 Seventh Avenue in Times Square, where it plans to build a 340,000-square-foot, 36-story, multi-use complex. Times Square Gateway Center, located between Seventh Avenue and 47th Street, will feature retail space, a hotel tower and the nation’s largest single LED screen for Broadway’s iconic lights and advertising.

Steven Kassin, co-managing partner of Infinity Urban Century, confirmed the amount of the investment to The Commercial Observer.

Barry Sternlicht’s Starwood Property Trust and Starwood Capital Group provided $475 million in combined acquisition and construction financing for the development. The loan will have an initial funding of $375 million with $100 million of future funding for redevelopment costs and also contains an equity participation right for the lender. Read More

Mortgage Beat

U.S. Postal Service Sells Building in Queens for $6.55 Million

78-02 Liberty Avenue.

The U.S. Postal Service has sold a roughly 84,000-square-foot industrial building to Treasure Island Storage. The building is at 78-02 Liberty Avenue, in Ozone Park, Queens–a site that has been used as a mail sorting facility for the past thirty years. Ken Cayre, president of Cayre & Sons Acquisitions, the company controlling TI Storage, confirmed the deal to The Commercial Observer. Read More