Taconic-Led Partnership Gets $102M Mesa West Loan for 817 Broadway
By Cathy Cunningham December 5, 2016 4:23 pm
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JLL has secured a $102 million on loan on behalf of a partnership between Taconic Investment Partners, TH Real Estate and Squire Investments for the acquisition of 817 Broadway.
The brokerage’s Jonathan Schwartz and Aaron Appel arranged the financing from Mesa West, which the trio of firms will also use to fund capital improvements and re-tenant the property.
The 14-story office building located on the corner of East 12th Street, just south of Union Square. The property, which was built in 1900, comprises 107,000 square feet of office space and 6,500 square feet of retail space.
Two Long Island-based families, the Levines and the Frankels, previously owned the property, according to records filed with the city from 2012.
“This financing allows strong sponsorship to transform 817 Broadway into a Class A asset that will benefit from its location in one of the world’s premier office markets,” Schwartz said. “We expect financing to continue to be available as sponsors look to enhance assets to cater to the tech, media, fashion and financial tenants that have grown Midtown South’s rent basis.”
“Given their successful track record executing business plans in the New York metro, we’re confident in the sponsors’ ability to deliver once again,” Russell Frahm, a vice president at Mesa West Capital, said in prepared remarks. “We are looking forward to working with the sponsorship group for the first time.”
“This deal is a great example of the strength of Midtown South’s office market,” Appel added. “Investors will continue to covet well-located assets with value-add potential as they look to capitalize on strong rent growth trends.”
