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Mortgage Observer

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

Hudson’s Bay to Refinance Saks Fifth Avenue Land With $1.25B Loan

The Saks Fifth Avenue building.

Bank of America, Morgan Stanley, Goldman Sachs Mortgage Company and The Bank of Nova Scotia are providing a $1.25 billion mortgage to Toronto-based Hudson’s Bay Company to refinance the ground below its Saks Fifth Avenue building at 611 Fifth Avenue, according to a release from the borrower.

The lenders appraised the landmark building at about $3.7 billion, based on the assumption that the entire property is net leased at an estimated fair-market rent by the luxury retailer. HBC acquired the Saks retail chain, including its 650,000-square-foot flagship store in Midtown, last year for $2.9 billion. Read More

Mortgage Observer

$42M Refi for Times Square Office Building

260 West 39th Street

Meridian Capital Group negotiated a $42 million mortgage to refinance an office building owned by Brooklyn-based Orbach and Associates. New York Community Bank provided the loan on 260 West 39th Street, a 172,500-square-foot property, according to city records.

The 12-year loan has a fixed-rate of 3.875 percent and interest-only payments for the first four years, followed by a 30-year amortization schedule, according to a representative for Meridian. Read More

Mortgage Observer

Terra Funds Witkoff Land Deal for Sunset Strip Development

Rendering of the Marriott Edition hotel 9040 Sunset Boulevard.

Terra—the Latin word for “ground”—is becoming all the more relevant for one firm. Terra Capital Partners closed its third land deal as the mezzanine lender continues to shift its attention to non-income producing and transitional assets for established sponsors.

The New York-based firm provided a $25 million mezzanine loan to fund the Witkoff Group’s acquisition and pre-development of 9040 Sunset Boulevard, a 1.4-acre development site in West Hollywood, Calif. 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

DTZ Capital Markets Team Retained for Caribbean Resort Deal

Six Senses Residences Freedom Bay.

DTZ’s Capital Markets Group has been hired by the London-based developer Affinity Resorts to secure $30 million to complete a 5-star resort under construction on the island of St. Lucia in the Caribbean, Mortgage Observer can first report.

The first-lien financing will provide the required capital to supplement pre-sales proceeds to finish the property, Six Senses Residences Freedom Bay, which will contain 109 timeshare villas and 48 residences when completed. Read More

Mortgage Observer

Blackstone Lends $85M On Tavros’ Meatpacking Buy

44 Ninth Avenue

A joint venture between Tavros Capital and Arel Capital bought three Meatpacking District properties—including one with the potential to become a global flagship store—with $85 million from Blackstone Mortgage Trust.

The three properties, on 14th Street, 15th Street and Ninth Avenue, cost a total of $105 million, confirmed Nicholas Silvers, a co-founder of New York-based Tavros, a developer and real estate investment manager. His firm also nabbed development rights along 15th Street, though it is not clear what, if anything, the firm will build with them.  Read More

Mortgage Observer

Great Neck Co-op Pays Down First Mortgage Two Years Early With NCB

2 East Mill Drive (Zillow)

A Great Neck, N.Y., co-op received a $25 million first mortgage with a $2.5 million line of credit from National Cooperative Bank, a representative for the bank confirmed to Mortgage Observer.

Great Neck Terrace Owners Corp., the owners’ association for 2 East Mill Drive in Great Neck took the 10-year loan to replace a previous $19 million mortgage with a $2 million line of credit two years early. That loan, also from NCB, had a rate of 3.4 percent, the representative said. Read More

Mortgage Observer

Security National Refis Part of Portfolio With Karlin Real Estate

The Alliance Bank building in St. Paul, part of the portfolio that was refinanced.

Karlin Real Estate, a Los Angeles-based real estate investment firm, provided an affiliate of Eureka, Calif.-based Security National Master Holding Co. with a $37.9 million credit facility to refinance six commercial assets located throughout the U.S., Mortgage Observer has learned.

Karlin’s financing includes a $25.8 million bridge loan secured by a five-property, 1.4 million-square-foot portfolio of office and retail properties in Minnesota, Mississippi, Texas, Illinois and Michigan, a spokesperson for Karlin told MO. Karlin also provided a $12.1 million short-term loan to refinance a stabilized 184,608-square-foot office property in Louisiana. Read More

Mortgage Observer

Applegrad Buys More of the Bronx With $14M From Signature

1420 Grand Concourse

Bronx landlord Sam Applegrad bought a $19 million multifamily building in the borough with $14.25 million from Signature Bank, Mortgage Observer has exclusively learned.

The loan for the purchase of 1420 Grand Concourse has an interest rate of 3.375, according to a representative for Eastern Union Funding, which brokered the deal. The five-year loan has a one-year interest only period.  Read More

Mortgage Observer

When Relationships Fail

Joshua Stein

We sometimes hear about “relationship lending.” But not so much about the other side of the coin—relationship lending gone wrong. Consider this anecdotal account of a fictional bank we’ll call “XYZBank”—an institution that found its way into a California construction loan in order to grow a relationship, but ended up killing that relationship instead, thanks to their difficult approach to loan administration. Details have been changed to protect the guilty. Read More

Mortgage Observer

Chang Refis FiDi Hotel With $135M From UBS

Holiday Inn Financial District

Sam Chang and Jubao Xie, sponsors of the Holiday Inn Financial District, a full service hotel at 99 Washington Street, have refinanced their debt on the property.

The sponsors, who are the majority shareholders of McSam Downtown, the ownership entity, took a $135 million loan from UBS, Mr. Chang confirmed to Mortgage Observer. Read More