World Wide Group Snags $50M Loan for Raleigh Rental Tower
Cathy Cunningham June 17, 2016, 11:02 a.m.
The World Wide Group has secured $50 million in permanent financing from Hartford Life Insurance Company for SkyHouse, a 320-unit residential rental tower in Raleigh, N.C, according to an industry source. The financing closed on May 24, and was arranged by The Singer & Bassuk Organization.
The SkyHouse acquisition is World Wide’s first foray into the Raleigh market. The developer purchased SkyHouse for a total price of $103 million. The property, which has 10,000 of communal indoor and outdoor space, is 90 percent leased and located at 308 South Blount Street in the city center. The base of the building houses retail space, including a restaurant along with a yet-to-open market place and coffeehouse.
The transaction is the fourth to be brokered by SBO on behalf of World Wide since December—SkyHouse brings the total amount of debt arranged to $300 million. “Over the past six months, World Wide has added a diverse mix of residential properties to our growing portfolio,” David Lowenfeld, the chief operating officer of World Wide Group, said in prepared remarks. “Long-term, fixed rate financing is a vital component to our long-term business strategy.”
The second most recently closed deal was a $32 million loan provided by German bank Helaba for Luna Crescent, a 124-unit residential building located at 42-15 Crescent Street in Long Island City, N.Y. World Wide purchased the property for $73 million in March. The building includes 7,500 square feet of ground floor retail space.
Luna Crescent was World Wide’s second LIC acquisition. The developer also closed $165 million in permanent financing from Natixis Real Estate Capital in December 2015 for QLIC, a 421-unit ground-up development located at 41-42 24th Street, across Queens Plaza from Luna Crescent. The building features 28,000 square feet of amenities, including an outdoor swimming pool, outdoor barbeques with picnic areas, a fitness center, parking, and a bike room.
Lastly, 110 Green Street in Greenpoint, Brooklyn was acquired by World Wide for a total of $103 million from Meadow Partners, and was the first residential transaction to exceed $100 million in the gentrifying neighborhood. The borrower $50 million in permanent financing for the 185,000-square-foot, 130-apartment property from AXA Equitable Life and closed in January.
“Building on our 25-year relationship, it has been an honor to work hand-in-hand with a great name in ownership such as World Wide Group to deliver sound financing for their noteworthy properties that extend beyond Manhattan’s boundaries,” Andrew Singer, the chairman and the CEO of SBO, said via a spokeswoman.