Mortgage Observer

Mortgage Observer

Arlington Hyatt Hotel Gets Construction and Mezz Financing

Rendering of Hyatt Place Arlington.

HFF secured combined financing totaling $42.2 million for the development of a 161-key, select-service Hyatt Place hotel in Arlington, Va., Mortgage Observer can first report.

The brokerage worked on behalf of a partnership between Schupp Companies and LodgeWorks Partners to secure a $32 million, five-year senior construction loan through Bethesda, Md.-based EagleBank and $10.2 million in mezzanine debt through Austin-based Endeavor Real Estate Group. The combined financing makes up 85 percent of the capital stack, according to HFF. Read More

Mortgage Observer

Florida Beach Resort Gets $44M Loan For First Development Phase  

Rendering of The Henderson, a Salamander Beach & Spa Resort.

Avison Young’s capital markets group secured a $44 million construction loan from Bank of the Ozarks for phase one of a resort development along Florida’s panhandle, Mortgage Observer Weekly has first learned.

Called The Henderson, a Salamander Beach & Spa Resort, the 171-room luxury hotel at 2700 Resort Way in Destin, Fla., is expected to open in the spring of 2016. The groundbreaking commenced in January 2014. Read More

Mortgage Observer

The 50 Most Important People in Commercial Real Estate Finance

51 Photos

It was a year of record-breaking prices, resurgent loan volumes and headline-grabbing mergers and acquisitions. And once again, we dug through public records and talked to dozens of industry experts to assemble our third annual list of the 50 Most Important People in Commercial Real Estate Finance. It’s our subjective take on who ruled the roost in the last year. Read More

Mortgage Observer

Wells Fargo Sets Defeasance Record

Wells Fargo.

With the defeasance sector heating back up, as more borrowers look to replace their CMBS loans with Treasuries to lock in low interest rates, Wells Fargo set an eyebrow-raising record last year.

The banking giant, which ranks as the nation’s largest commercial loan servicer, defeased $11.8 billion in securitized debt in 2014, equal to the amount of total defeasance throughout the U.S. the previous year, a Wells Fargo executive told Mortgage Observer. Read More

Mortgage Observer

Brooklyn Buyer Grabs 27 West 24th Street With Loan From Signature

27 West 24th Street.

Brooklyn-based MJ Orbach Associates purchased the Kaufman Organization’s 11-story office building at 27 West 24th Street for $92.5 million with a $52.5 million loan from Signature Bank, records filed with the city this afternoon show.

The acquisition and financing both closed on Feb. 23. The five-year debt carries an interest rate of 3.75 percent, according to the loan documents. Read More

Mortgage Observer

Helaba Finances 1035 Third Avenue Condo Buy

1035 Third Avenue.

The German bank Helaba provided a $42 million loan to Acadia Realty Trust for the purchase of retail, office and parking condominium space on Manhattan’s Upper East Side, Mortgage Observer has learned.

Acadia, based in White Plains, N.Y., acquired the mixed-use property at 1035 Third Avenue for $51 million through its Strategic Opportunity Fund IV platform, according to the REIT’s latest earnings report. The seller is listed as O’Connor Capital Partners led by the former Cushman & Wakefield CEO Glenn Rufrano. Read More

Mortgage Observer

Madison Realty Capital Loans $20M for West Harlem Condo Construction

99 Morningside Avenue

Eastern Union Funding secured a $20 million construction loan for Azimuth Development Group’s 99 Morningside Avenue condominium project, Mortgage Observer has learned. Madison Realty Capital provided the two-year, interest-only loan, with an interest rate of 11.5 percent.

“Normally, paying double digit rates is very high, and most of our construction loans are sub-five percent,” said Eastern Managing Directer Jeff Seidenfeld, who brokered the deal. “In this case, the final product was cheap equity. This leverage would have been impossible had we gone with a conventional bank—the client would have had to put up substantially more equity and possibly taken out a partnership.”  Read More

Mortgage Observer

HFF Brokers $110M Hotel Portfolio Financing Led by CCRE

Sheraton Orlando North.

New York-based CCRE led the financing on a $110 million loan for a 2,566-key, full-service hotel portfolio with seven properties in Florida, California, Virginia, Ohio and New Mexico, Mortgage Observer has learned.

HFF worked on behalf of the borrower—a joint-venture partnership between the $9 billion global alternative investment firm Värde Partners, the privately held investment group Waramaug Hospitality Management and the New York-based global hotel management company Interstate Hotels & Resorts—to secure the five-year, floating-rate loan from a group of lenders. Read More

Mortgage Observer

Moinian Refinances Fifth Avenue Buildings In Deal Brokered by Meridian

545 Fifth Avenue.

The Moinian Group refinanced two adjacent office and retail buildings spanning a full block on Fifth Avenue with a $310 million CMBS loan from Morgan Stanley, Mortgage Observer has first learned.

The 10-year deal, secured by Meridian Capital Group, carries a fixed interest rate under 4 percent, according to the broker. The new loan replaces previous debt that Column Financial provided in March 2006, city records show. Read More

Mortgage Observer

Bank of the Ozarks Finances Midtown South Office Buy

12 East 33rd Street.

Dalan Management paid $36 million for two Midtown South office properties, as part of a 1031 exchange, with a $25 million mortgage from Bank of the Ozarks, according to HKS Capital Partners, which brokered the loan.

The four-year loan has a rate of 375 over Libor with a floor of 4 percent, according to a representative for the broker. HKS principals Jerry Swartz and Ayush Kapahi worked on the deal. Read More

Mortgage Observer

Corigin Refinances NYU Student Dorm

80 Lafayette Street.

Prudential Mortgage Capital Company originated a $161.3 million Freddie Mac loan to refinance a New York University dormitory in Tribeca owned by Corigin Real Estate Group, according to the borrower and lender.

The 10-year deal, which closed on Feb. 2, contains a $51.3 million gap mortgage, according to the loan documents. The new debt replaces a $110 million mortgage securitized by Bank of America in 2005. Read More

Mortgage Observer

Bank of China Goes in on Chicago Office Conversion Loan

1K Fulton rendering.

Bank of China took the $120 million senior portion of a $220 million refinancing on a nearly complete Chicago office building, where Google will soon make its nest, a broker who eyed the deal told Mortgage Observer.

Mesa West Capital originated the five-year, floating-rate debt. The loan to local developer Sterling Bay replaces about $150 million on the former cold storage warehousing facility, now known as 1K Fulton, and will fund additional costs on the building’s conversion. Read More