JLL arranges $98M Recap of Kaufman’s Madison Square Portfolio


United Overseas Bank has provided a $97.6 million leasehold mortgage to the Kaufman Organization and an affiliate of China Orient Asset Management for the recapitalization of the firms’ Madison Square Portfolio, Commercial Observer can first report.

The Madison Square Portfolio comprises four office properties south of Madison Square Park totaling 352, 658 square feet. The assets are located at 119-125 West 24th Street, 19 West 24th Street, 13-15 West 27th Street and 45 West 27th Street.

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“We are very pleased to enter into this new partnership with China Orient, and the new mortgage financing with United Overseas Bank arranged by JLL (JLL),”  said Fredric Leffel, the president of Kaufman New Ventures in prepared remarks. “Following the comprehensive redevelopment and repositioning of these four office buildings, the Madison Square Portfolio has been totally “re imagined,” attracting a roster of premier tenants from a broad spectrum of industries. These new relationships will position us to maintain the portfolio’s position as premier office locations within the Midtown South market well into the future.”

JLL secured the floating rate loan, which has a five-year term. Kellogg Gaines and Aaron Niedermayer led the JLL team.The buildings recently underwent $33 million in capital improvements, according to information provided by JLL.

“This was a highly complex portfolio transaction with four properties on separate ground leases,” said Niedermayer. “We worked closely with our client and United Overseas Bank to find creative ways to structure the loan in order to both achieve the partnership’s goals and satisfy the requirements under the ground lease.”

“Media and tech tenants continue to seek the open and flexible space that the properties in this portfolio offer, which gives lenders confidence in the assets and the market,” Gaines said in prepared remarks. “This recapitalization allows the sponsors to take advantage of recently completed capital improvements and continue to lease up the portfolio with a long-term outlook for the partnership.”

Officials at United Overseas Bank could not immediately be reached. Officials at  China Orient Asset Management did not immediately return requests for comment.