Natixis and UBS have provided Stellar Management and The Chetrit Group with a $550 million, fixed-rate loan to refinance the Yorkshire and Lexington Towers, two Upper East Side apartment buildings, Commercial Observer can first report.
Steve Kohn, Alex Hernandez, Alex Lapidus and Noble Carpenter of Cushman & Wakefield’s equity, debt and structured finance team, along with Doug Harmon and Adam Spies of the firm’s capital markets team, arranged the financing on behalf of the borrowers, according to a source with knowledge of the transaction.
Stellar and The Chetrit Group purchased the properties in September 2014. The new debt replaces a roughly $425 million loan made by Deutsche Bank the same year which has now been assigned over to Natixis and UBS, the source said. Officials at Natixis declined to comment on the deal, and UBS did not immediately return a request for comment.
“The combination of a healthy securitization market and a highly-liquid subordinate financing market for such quality assets as these resulted in very attractive terms for this financing,” said C&W Executive Director Alex Hernandez in prepared remarks.
Yorkshire Towers, located at 305 East 86th Street, is 692-unit, 21-story apartment building built in 1964. The building encompasses the entire eastern front of Second Avenue, between East 86th and 87th Streets. Lexington Towers—built in 1962—is a 137-unit, 15-story apartment building, located at 160 East 88th Street on the southeast corner of East 88th Street and Lexington Avenue, just a few short blocks from Central Park.
Both properties have undergone renovations, including walk-in closets, oak floors, kitchens with stainless steel appliances, in-unit washer/dryers and private balconies at Yorkshire Towers only. Each tower has a 24-hour doorman, fitness centers and underground parking with an on-site valet. Yorkshire Towers includes a fully renovated swimming pool, a sauna, storage space and a driveway for residents and a children’s playroom.
“This is quintessential multi-generational Manhattan real estate. The extensive renovation program undertaken by the ownership has positioned these assets for long-term success in the competitive Manhattan residential market,” Steve Kohn, the president of C&W’s equity, debt & structured finance team, Steve Kohn said in prepared remarks.
C&W declined to comment on the deal beyond the release. Stellar Management declined to comment on the transaction. Calls made to The Chetrit Group were not returned.