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Mortgage Observer

Mortgage Observer

Edgewater N.J. Complex Scores $85M Refi From Freddie Mac

The View at Edgewater

Berkadia Commercial Mortgage arranged an $85 million revolving credit facility through Freddie Mac for an Edgewater, N.J., mixed-use complex, Mortgage Observer has exclusively learned.

The five-year loan has a floating rate based on Libor, currently ticking in at 2.05 percent, and a 75 percent loan-to-value ratio. The proceeds will be used to refinance a bridge loan, also provided by Berkadia, prior to stabilization. The property, called The View at Edgewater Harbor, was built in 2012, according to Zillow.com. Read More

Mortgage Observer

99 Wall Goes Condo With $52M From Cornerstone Real Estate Advisers

99 Wall Street

The Claremont Group will take FiDi office building 99 Wall Street condo with $52.4 million from Cornerstone Real Estate Advisers, Mortgage Observer has learned. Cornerstone, a subsidiary of Massachusetts Mutual Life Company, provided a Libor-based, floating-rate loan with an interest rate “in the low-middle single digits,” according to a representative for CBRE, which brokered the loan. The three-year loan funds the difference between the value of the building and the cost of construction and is non-recourse, the representative said. Read More

Mortgage Observer

Long-Awaited 53rd Street Jean Nouvel Tower Gets $860M Construction Loan

53W53 front

Tower Verre, 53W53, MoMA Tower … the project has gone by many names, and dragged on for many years. But the super skinny Jean Nouvel-designed tower planned for 53 West 53rd Street is finally on the way, having closed on the purchase of needed air rights and an $860 million construction loan this week.

Hines, the Texas-based mega developer and owner that is partnering with Goldman Sachs and Singapore-based developer Pontiac Land Group on the 82-story residential condominium tower, closed the massive loan with a foursome of Asian banks, according to a statement.  Read More

Mortgage Observer

Manhattan Condo Developer Receives Construction Loan for Chelsea Conversion

Rendering of West 19th Street.

Manhattan condominium developer Six Sigma received a $29 million acquisition and construction loan from Knighthead Funding, LLC to finance the conversion of an office building in Chelsea to luxury residential condos, Mortgage Observer has learned.

The site at 435 West 19th Street between Ninth and Tenth avenues, one block from the Highline, is currently occupied by a five-story, 21,800-square-foot office building, which will be converted into a nine-story, 27,500-square-foot residential condo property. The completed asset will contain a private swimming pool in each condominium unit, according to Johnny Wan, managing director of Six Sigma. Read More

Mortgage Observer

North Carolina Mall Loan Hits Delinquency Status for First Time

Independence Mall.

A $100 million securitized J.P. Morgan loan on Independence Mall in Wilmington, N.C., was reported as 30 days delinquent, according to September servicer data obtained and provided by Trepp. The borrower entity is listed in the deal prospectus as Centro Independence LLC.

Sears, Dillard’s, Belk and JCPenney anchor the one million-square-foot regional shopping center at 3500 Oleander Drive, property records show. The first three retailers own their parcels. Read More

Mortgage Observer

So They Say: Robert Durst

Robert Durst

Durst family outcast Robert Durst’s aberrant behavior surfaced again in July, when he allegedly urinated on a cash register and candy rack at a Houston CVS store. Mortgage Observer looks back at some odd quotes and curious moments of silence from the Texas millionaire. Read More

Mortgage Observer

Struggling Yeshiva University Refinances Manhattan Properties in Turnaround Effort

2520 Amsterdam Avenue.

The New York-based private Orthodox Jewish institution Yeshiva University received proceeds from the sale of $175 million in taxable bonds serviced by Kansas City, Mo.-based UMB Bank to refinance five educational buildings the university owns in Manhattan, public records show.

The 10-year debt, which closed in late August, replaced previous short-term loans that were coming due this fiscal year and “raised additional liquidity and runway to support university initiatives in the coming years,” a spokesperson for the university told Mortgage Observer. The bonds replace previous debt from Bank of America totaling $60 million. Read More

Mortgage Observer

Chase CTL Finances Kips Bay Multifamily Acquisition from Pan Am Equities

153-155 East 32nd Street.

Chase Commercial Term Lending provided a $15 million loan for the acquisition of a multifamily rental property at 153-155 East 32nd Street in Kips Bay, Mortgage Observer has exclusively learned.

The seven-year hybrid loan to Bronx-based Sacchetti Realty Corporation carries an interest rate in the mid-3 percent range with a loan-to-value ratio of 44 percent, according to the lender. Read More

Mortgage Observer

Investors Look Away from Multifamily Assets

Sam Chandan

With an eye to real estate’s next opportunity, cyclical investors and their lending counterparts are shifting their attention away from the apartment sector in increasing numbers. In place of multifamily, they are expanding their portfolios with an array of commercial assets, both core and value-add. As confidence in the economic expansion has grown and the appetite for risk-taking has recovered its former vigor, the allure of relatively higher yields from retail and industrial properties, in particular, has attracted a rising share of mobile capital.

The latest numbers align with cyclical investors’ updated narrative. The second quarter’s year-over-year gains in transaction volume were dominated by retail property sales, weighted to sales of small- and mid-cap properties in primary and secondary markets. Apartment trades registered more modest increases, though they remained the most traded asset overall. Read More

Mortgage Observer

Related Fund Management Lends $60M For Hotel Near Hudson Yards

A rendering of the Hudson Yards project

David Marx’s 399-key hotel project near the Hudson Yards megaproject got a $60 million bridge loan from Related Fund Management and Highbridge Principal Strategies. The soon-to-rise Courtyard by Marriott sits at 461 10th Avenue, near 34th Street.

Related Fund Management, a subsidiary the transformative project’s developer, The Related Companies, launched the credit platform with New York-based investment firm Highbridge last year, with plans to invest $800 million in real estate debt, especially in gap financing. Read More

Mortgage Observer

Wells Fargo Names Horatio Jones Head of Multifamily in South Florida

Jones Horatio.

Wells Fargo has appointed Horatio Jones, one of its commercial real estate loan originators, to lead the bank’s South Florida office for multifamily GSE lending, Mortgage Observer has exclusively learned.

Mr. Jones, who is based in Fort Lauderdale, brings more than seven years of commercial real estate lending experience to the new position, according to a Wells Fargo spokesperson. Read More

Mortgage Observer

Chetrit, Clipper Equity Score $229M Construction Loan for Flatotel Conversion

135 West 52nd Street (PropertyShark)

Prolific development duo Joseph Chetrit and Clipper Equity received $228.5 million in construction funds to convert a Midtown hotel that was foreclosed on last year to a combination of office and residential condominiums.

The Flatotel, at 135 West 52nd Street, will become a five-floor “boutique” office condominium and 37 floors of luxury residential condos, according to a representative for Meridian Capital Group, which brokered the loan with Deutsche BankRead More

Mortgage Observer

Fast, Cheap and Good: How to Get the Most Out of Your Attorney

Joshua Stein

In an ideal world, as imagined by anyone hiring counsel, attorneys always deliver three things. First, incredibly fast work, to meet the unusual and extreme timing needs of this particular transaction. Second, low bills, because everyone knows attorneys just push a button to create documents and close deals. And, third, absolute perfection regardless of complexity.

In an attorney’s ideal world, clients would have the right to select only any two of those goals. Of course, clients and the market won’t accept that. So clients and their attorneys must work together to try to help clients meet their goals. Here are some suggestions. Read More