Signature Bank originated a $31 million loan to help finance the acquisition of a 14-story office and retail building at 215 West 40th Street in Manhattan’s Garment District, records filed with the city show.
The Heskel Group, based in Forest Hills, Queens, bought the 65,186-square-foot building, known as the Denim Building, from home-curtains manufacturer Elyahu Cohen for $52.5 million. Mr. Cohen is the president of the New York-based Regal Home Collections.
The 10-year acquisition loan carries an interest rate of 3.75 percent, said George Klett, executive vice president and chairman of the commercial real estate committee at Signature Bank. Meridian Capital Group Vice President David Ganz represented the borrower in the deal, according to a spokesman for the commercial mortgage brokerage.
A portion of the financing covers existing debt on the property from HSBC with an unpaid principal balance of $14.1 million, the loan documents show.
Several of the building’s office units are currently on the market, according to recent listings. Shadow Boxers bar occupies the building’s ground-floor retail space. The property, located between Seventh and Eighth Avenues, was completed in 1924.
“The Heskel Group are valued clients of ours and are highly experienced real estate owners,” Mr. Klett told Commercial Observer. “The property’s rents are below market. Therefore there is tremendous potential to increase the cash flow of the property, which will result in an increase in value.”
Representatives for the Heskel Group were not available for comment.