Mortgage Observer

Mortgage Observer

Santander Finances GDC Long Island City Industrial Buys

11-24 45th Road.

Santander Bank provided a $22 million loan to Hawthorne, N.Y.-based GDC Properties to facilitate the acquisition of two Long Island City industrial properties ripe for redevelopment, city records show.

The retail and residential developer acquired a one-story warehouse at 11-24 45th Road from a seller listed as Eunhasu Corporation for $37 million and a factory at 45-35 11th Street $7 million from a seller listed as Kyu Heung Park. Read More

Mortgage Observer

Emerald Creek Lends $23M For LES Condo Project

50 Clinton Street

New York-based private equity firm Emerald Creek Capital provided a $23 million acquisition/ bridge loan for the purchase of a development site on the Lower East Side.

Sponsor DHA Capital intends to build a mixed-use project at the site, located at 50 Clinton Street. The building will hold seven-stories of residential condominiums as well as retail, a gym and roof deck for residents.  Read More

Mortgage Observer

Houston Office Loan Goes to Servicer Watchlist as Vacancies Mount

Park Towers in Houston.

A $96.7 million CMBS loan on a four-office portfolio in Houston was added to Midland Loan Services’ watchlist this month as tenant vacancies at the properties continue to stack up, according to a report issued today by the financial research firm Trepp.

Three tenants occupying more than a third of the portfolio, which includes the 18-story office buildings Park Towers South and Park Towers North, have relocated or will vacate the properties before November, servicer notes obtained by Trepp show. Read More

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