Mortgage Observer

Mortgage Observer

AIG Lends $113M on Hudson Square Office Building

330 Hudson Street

Chicago-based Callahan Capital Properties has taken out a $133 million loan from the insurance arm of AIG, public records indicate.

The loan is backed by office building 330 Hudson Street, in the Hudson Square area. Callahan, along with partner Ivanhoé Cambridge, a Canadian pension and insurance fund manager, announced last month that it had acquired a 49 percent interest in the property for approximately $150 million, as Commercial Observer reported at the time. Read More

Mortgage Observer

CBRE Brokers $82M Refi of Atlanta Office Complex

University Park

An affiliate of DRA Advisors, a pension fund, refinanced their debt on the University Office Park in Atlanta, Mortgage Observer has first learned. The $82 million loan from J.P. Morgan Chase was brokered by Shawn Rosenthal of CBRE.

“The floating rate loan is competitively priced,” Mr. Rosenthal said, declining to provide other terms of the deal. The previous loan had matured, he said. Read More

Mortgage Observer

Terra Capital and Santander Lend on JDS Luxury Condo Project Near High Line

514 West 24th Street

A joint venture between JDS Development Group and Largo Investments received financing from New York-based mezzanine lender Terra Capital Partners and Santander Bank to fund the predevelopment of a luxury condominium at 514 West 24th Street, Mortgage Observer has first learned.

Terra Capital provided a $12 million preferred equity investment to coincide with an $18 million senior loan from Santander. Read More

Mortgage Observer

L&L, Prudential Score $98M to Reposition Chelsea Offices

511 West 25th Street

A joint venture of commercial landlord L&L Holding Co. and insurer Prudential received $98 million from the Aareal Bank Group, a German bank that specializes in real estate, to buy three Manhattan office and showroom buildings, Mortgage Observer has learned.

The J.V. paid $160 million for 511-514 West 25th Street, buildings with class-A office, retail and gallery property, according to records filed with the city. The west Chelsea buildings were on offer by the Related Companies, part of a group of properties that the company has been unloading as it liquidates a distressed property fund, as reported. Read More

Mortgage Observer

M&T Refinances 250 Mercer Street Through Freddie Mac Loan

250 Mercer Street

M&T Realty Capital Corp., the commercial mortgage banking subsidiary of M&T Bank, recently closed a $34 million Freddie Mac loan to refinance a 256-unit co-op building at 250 Mercer Street in NoHo, a spokesperson for the bank told Mortgage Observer. The borrower is listed in public records as Mercer Square Owners Corp.

Proceeds from the ten-year loan will go to capital improvements on the 16-story pre-war building and allow the shareholders to lock into a low fixed interest rate, according to the lender. Read More

Mortgage Observer

Chairman of Signature Bank Says Refinance Now

Bloomberg Tower (Rian Castillo)

Scott Shay, chairman of New York-based Signature Bank, has a simple message: now is the time to refinance. Mr. Shay urged borrowers to think about the combination of rising interest rates and low cap rates Wednesday morning in his keynote speech at the Real Estate Services Alliance’s Commercial Lender’s Forum. The event was held at Bloomberg LP’s offices in Manhattan.

Mr. Shay said that he would advise clients who aim to refinance, but want to wait until 2016 or 2017 and avoid making prepayment penalties, to do so now. Read More

Mortgage Observer

Flushing Nursing Home Refies With $24M HUD Loan

33-21 Union Street in Queens

Eastern Union Funding arranged a $24 million HUD loan to refinance the 280-bed Union Care Plaza Center, a nursing home in Flushing, Queens. Real estate investor David Marx’s eponymous firm borrowed the sum for the facility, located at 33-21 Union Street, which it triple-net leases to a third-party operator.

The 12-year loan has a fixed annual interest rate of 3.25 percent and is self-liquidating, said Shaya Ackerman of Eastern, who brokered the deal. The previous loan, also from HUD, had an interest rate 9.5 percent. Read More

Mortgage Observer

Steiner Seeking $300M Construction Loan for DoBro Resi Building   

A rendering of the planned tower at Flatbush and Schermerhorn.

As Downtown Brooklyn continues to sprout luxury residential spires, one developer is ready to join the herd—and needs some cash to do so.

Doug Steiner’s firm, Steiner NYC, is on the hunt for $300 million in construction financing to build a residential rental building at Flatbush Avenue and Schermerhorn Street in Downtown Brooklyn, a source told Mortgage Observer. A representative for Steiner declined to comment. Read More