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Mortgage Observer

Mortgage Observer

Hakim Seals the Deal Sans Mezz in LA Buy

6100 Wilshire Boulevard

Los Angeles-based investor Citi Real Estate, headed by Sam Hakim, took a $57.5 million CMBS loan from UBS to buy a Los Angeles office property at 6100 Wilshire Boulevard last month. But prior to the purchase, the borrower, the scion of an established Los Angeles real estate family, had actually arranged for $65 million in funds for the $76 million buy, with a portion of the financing in a mezzanine loan, a source close to the deal told Mortgage Observer.

Alas, when the rates were set to lock this summer, the mezz turned out far pricier than expected, the source said. The borrower opted instead to fill that portion of the capital stack with equity—a move highlighting the potential effect of a tumultuous CMBS market, the source said. Read More

Mortgage Observer

ERISA Language: When You Need It, When You Don’t

Joshua Stein.

The Employee Retirement Income Security Act, a 1974 overhaul of the U.S. pension system, might at first glance not sound relevant to real estate lending. If you look closely, though, modern loan documents often contain pages of mysterious language on that federal law, which sets the rules for many pension plans. Why would a law on pensions affect real estate loans?

To answer that question, I turned to an expert, Stephen Land, the tax department chair at Duval & Stachenfeld LLP, who has handled ERISA issues almost since the law was enacted. Read More

Mortgage Observer

Koll Scores $158M to Refi Orange County, Calif. Office/ Industrial Park

Airport Business Center

CBRE Capital Markets sourced $158 million from Brookfield Asset Management to refinance the Airport Business Center, an office/ industrial park in Irvine, Calif., Mortgage Observer has exclusively learned.

Brookfield originated the five-year, fixed-rate, full-term interest-only loan, which carries an “all-in interest rate in the low 5 percent range,” according to a representative for CBRE. A Brookfield representative did not respond to a request for comment. Read More

Mortgage Observer

Shaoul Secures Project Financing for Manhattan Condo Conversions

Post Luminaria.

Magnum Real Estate Group’s Ben Shaoul received two loans totaling $270 million to acquire and convert two luxury apartment buildings in Manhattan to high-end condominiums, sources familiar with the transactions told Mortgage Observer.

Mr. Shaoul acquired the 33-story Post Toscana at 389 East 89th Street and the 20-story Post Luminaria at 385 First Avenue for $270 million from Atlanta-based Post Properties on Sept. 19, public records show. Post Properties co-developed the Upper East Side and Gramercy Park rental properties with Ronnie Hackett’s Clarett Group in 2002 and 2003. Read More

Mortgage Observer

Elevated Expectations in India

Sam Chandan.

Chinese President Xi Jinping travelled to India in mid-September with a stated goal of bolstering political and trade ties between the world’s two most populous nations.

The relationship between the countries has always been uneasy. In the modern era, their territorial and geo-political ambitions have rarely found alignment; as they have jockeyed for regional influence, friction over issues such as the disputed territories of Kashmir and India’s easternmost frontier with Tibet have stymied efforts at cooperation elsewhere. Even as the pomp of the latest state visit was getting underway, Indian and Chinese troops were posturing on their respective sides of the shared Himalayan border. And though there was no indication of conflict in New Delhi’s more civilized environs, the leaders did agree that the region would be well served by an updated perspective on these sources of conflict. Read More

Mortgage Observer

Greystone Provides HUD Loan for Multifamily Complex in Michigan

Wyndchase Apartments.

New York-based multifamily and healthcare lender Greystone provided a $27.5 million HUD loan to Michigan and North Carolina-based multifamily developer Singh Development to refinance a 340-unit apartment community in Canton, Mich., Mortgage Observer has first learned.

Greystone’s Fred Levine originated the 35-year, low-rate financing on Wyndchase Apartments, a luxury townhome and apartment complex located at 41376 Williamsburg Boulevard. Read More

Mortgage Observer

Old New York: The Plaza Hotel

The Plaza Hotel in 1946 (Getty Images)

Since opening in 1907, the iconic Plaza Hotel has embodied New York City elegance and luxury. Mortgage Observer looks back at the development—and many subsequent sales, redevelopments and repurposings—the landmark lodge has seen in the more than 100 years since it was erected at the corner of Central Park and Fifth Avenue. Read More

Mortgage Observer

DiamondRock Amends Lexington Hotel Loan to Reduce Borrowing Costs

The Lexington New York City.

Bethesda, Md.-based DiamondRock Hospitality Company amended a $170.4 million senior mortgage secured by the Lexington New York City hotel in Midtown, to extend the loan’s term and reduce the REIT’s borrowing costs, the company said in a release.

Citibank provided the initial three-year debt on the 725-key, full-service hotel at 511 Lexington Avenue in March 2012, city records show. Read More

Mortgage Observer

Mercantil Commercebank Finances Chelsea Retail Condo Buy

245 Seventh Avenue.

Mercantil Commercebank originated a $17 million mortgage to help finance the acquisition of a single-tenant retail condominium on the corner of West 24th Street and Seventh Avenue in Chelsea, Paulo Garcia, an executive at the bank, told Mortgage Observer.

New York-based Maguire Capital Group purchased the retail condo at 245 Seventh Avenue from Macklowe Properties for $31.5 million, according to another person familiar with the transaction. The price paid amounts to $3,316 a square foot. Read More

Mortgage Observer

New Brooklyn Medical Center Refis With $49M CMBS Loan

Meridian Capital Group arranged a $49 million CMBS loan for the refinance of the newly built Calko Medical Center in Brooklyn, Mortgage Observer has first learned.

Calko was built last year and holds 125,000 square feet of office and retail space. The medical center holds an ambulatory surgery center, medical offices and a pharmacy and is located at 6002 Bay Parkway in Brooklyn’s Bensonhurst neighborhood. It cost about $60 million to develop, according to published reports. Read More

Mortgage Observer

Titan Capital Lifts Brooklyn School Out of Bankruptcy

Adelphi Academy.

Westport, Conn.-based bridge lender Titan Capital ID provided $8.8 million in exit financing to take a struggling Brooklyn private school out of bankruptcy, Mortgage Observer has first learned.

Adelphi Academy, one of Brooklyn’s oldest preparatory schools, filed for Chapter 11 in June to reorganize its finances and continue operations during the bankruptcy process. Adelphi had planned the financial reorganization with Titan Capital prior to its bankruptcy filing, according to the the school’s general counsel. Read More