Oxford Properties Lands $180M Deutsche Bank Loan for Sutton Place Acquisition


Oxford Properties Group has nabbed a $180 million loan for its $278 million acquisition of Aalto57a 313,283-square-foot mixed-use property located at 1065 Second Avenue in Sutton Place, Commercial Observer has learned.

Deutsche Bank provided the 10-year, fixed-rate, interest-only CMBS loan. The lender was selected for its certainty of execution and also its relationship with Oxford Properties, sources told CO.

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The transaction closed Friday and the financing was wrapped up within 30 days, sources said.

An important and strategic financing for Oxford Properties Group—the real estate investment arm of Toronto-based pension fund OMERS—this deal marks Oxford’s first true multifamily project in the U.S. with 100 percent ownership interest.

CO first reported news of the sale and that a CMBS lender was in the lead to provide the financing in February. The bid was highly competitive— sources told CO at the time—with CMBS shops, life companies and GSEs all throwing their hats in the ring.

CBRE Capital MarketsJames Millon and Tom Traynor advised Oxford Properties on the acquisition financing. CBRE’s Darcy Stacom and Bill Shanahan advised the property’s sellers— World Wide Group and Rose Associates. Officials at CBRE declined to comment.

The financing is secured by the commercial leasehold interests in Aalto57; 169 luxury rental residences comprising 161,715 square feet, a 32,000-square-foot commercial podium leased by Bank of America and an adjoining 34,000-square-foot condominium leased to Whole Foods.

The property—which has an alternate address of 252 East 57th Street—also houses residential condominiums that are currently in the process of being sold and not part of the deal collateral.

Officials at Deutsche Bank declined to comment. Officials at Oxford Properties could not immediately be reached for comment.