Insurance Company Lends $76M Against Midtown West Apartment Tower
Transamerica Corporation, a private holding company for a number of life insurance and investment firms, provided New York-based G Holdings with a $76 million loan on La Premiere, a 324-unit apartment tower in Midtown West.
Wells Fargo’s managing director of commercial mortgage banking, Stephen Perricone, brokered the 30-year, self-amortizing, fixed-rate deal. The debt carries a 3.71 percent interest rate, a loan spread (profit margin) of 1.52 percent, and a 60 percent loan-to-value ratio, a spokeswoman for the San Francisco-based bank told Commercial Observer.
G Holdings is using the proceeds of the loan to refinance an $80 million loan originally provided by Canadian Imperial Bank of Commerce in April 2013. The previous loan was modified and updated in city records as an $88 million loan the following October.
The company purchased the property, located at 230 West 55th Street between Broadway and Eighth Avenue, for $130 million from property management firm Goodstein Management in January 2007, city records show.
The 31-story apartment building was completed in 1979 and is split into three parcels—the 324 apartment units, ground-floor retail and office space, and a 195-space, below-grade parking garage. Only the residential units serve as collateral for the recent financing, the Wells Fargo spokeswoman told CO.
G Holdings, which is headed by Harry Gross, the firm’s chief executive officer, and his son Ron Gross, the firm’s president and chief operating officer, is known for developing1717 Broadway—the tallest hotel in New York, according to published reports. The 67-story skyscraper houses the Courtyard New York Manhattan/Central Park andResidence Inn New York Manhattan/Central Park.
Transamerica is a subsidiary of Aegon N.V., a life insurance company headquartered in the Netherlands. Aegon acquired Transamerica in 1999.
A representative for G Holdings declined to comment. Representatives for Transamerica and Aegon did not respond to inquiries by press time.