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.
“The coordinated efforts of the parties involved not only performing under tight deadlines, but also incorporating key structural elements that carefully met our specific needs as a borrower,” Greg Gleason, director of finance at New York-based Corigin, told Mortgage Observer.
“This loan is part of a broader recapitalization and expansion of our real estate asset base across our various business lines, and we are excited to work with Prudential and Freddie Mac as key strategic partners in our continued growth,” he said.
Financing on the 317,500-square-foot property known as NYU Lafayette Hall at 80 Lafayette Street—a former city office building—dates back to a $900,000 construction loan from MetLife, which closed in November 1913.
The 17-story building, which is in walking distance to Chinatown, Little Italy and City Hall, was completed in 1915. Corigin, a developer, owner and operator that also does direct private lending, acquired the property and completed an “adaptive re-use” in 1999, according to the company’s website.
The sponsor completed another renovation and restoration to the building’s lobby and facade in 2010.
Lafayette Hall is NYU’s largest student residence hall with 262 units. The property houses more than 1,000 students and is fully leased above the street level.
The building’s ground floor contains three retail units totaling 5,700 square feet. Two of the units are occupied, while James Famularo of Eastern Consolidated is marketing the corner space of about 4,000 square feet.
Asking rent for the space is $100 a square foot for a term of five to 15 years, according to the broker.