ACORE, SL Green Lend $73M on 163 Varick Street


CBRE Capital Markets has negotiated $73.4 million in financing for the acquisition and redevelopment of 163 Varick Street, Commercial Observer can first report.

ACORE Capital and SL Green Realty Corp. provided the acquisition and construction loan.

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The Hudson Square office property is being redeveloped into a mixed-use, boutique Class-A office building by a joint venture between APF Properties and Drake Street Partners. It will be rebranded as 60 Charlton Street.

As reported by The Real Deal, landlord Michael Aryeh sold the existing six-story, 50,000-square-foot building to APF Properties in July for $65 million, more than triple what he paid a decade ago.

The building will undergo a gut renovation, and five new steel and glass floors will be added to the existing structure—increasing the asset’s total size to 100,000 square feet.

CBRE’s Shawn Rosenthal, Jason Gaccione, Sunny Somaiya and Kyle Baldwin secured the financing.

“Both SL Green (SLG) and ACORE were attracted to the unique nature of the redevelopment—a boutique office asset located in a dynamic submarket—as well as the strong qualifications of the highly capable sponsor group of APF Properties and Drake Street,” Rosenthal said in prepared remarks. “Within a couple of years, Hudson Square will see its first best-in-class, newly constructed, boutique office building.”

Construction is expected to commence in 2018.

A spokesman for ACORE did not immediately respond to a request for comment. A spokesman for SL Green declined to comment.