JTRE Secures $42M Refinance for East 54th Street Property, Lands Wellness Tenant
Jack Terzi’s JTRE Holdings has landed a $42 million refinance from LoanCore Capital for its Midtown East retail building, Commercial Observer has learned, while finding a final tenant for the property.
LoanCore provided a 10-year interest-only commercial mortgage-backed securities loan at the three-story 30,000-square-foot property at 240 East 54th Street, which replaces and upsizes a $30 million bridge loan from BBVA Compass, sources said.
Meanwhile, JTRE leased the final available space in the building to wellness company, Clean Market. As per Clean Market’s LinkedIn page, “Clean Market is a wellness space that encompasses innovative wellness services (IV Drip, infrared saunas and cryotherapy), a functional tonic bar and a modern apothecary market.” Clean Market took a 4,000-square-foot space on the ground floor for 15 years, sources said. The asking rent was $225 per square foot. Clean Market is expected to open in the location next month.
Terzi declined to cite specifics about either the finance or lease deal, but emailed about Clean Market: “As experiential retail becomes more desirable and more dominant, I was intent on finding a tenant that brought a unique and innovative approach to this trend. I wanted to add to the neighborhood a lifestyle offering that would complement the many existing fitness and food operations. I think Clean Market has created something truly special and differentiated. I believe they will be a highly relevant retailer for the foreseeable future.”
JTRE bought the former parking garage between Second and Third Avenues in January 2015 for $21 million. It is home to other health-related businesses including Blink Fitness and SoulCycle, as CO has previously reported. And California-based facial spa Skin Laundry signed a 12-year lease for a new location at the property, CO has also reported.
LoanCore Capital is a private partnership owned by GIC, CPPIB and LoanCore Management. A spokeswoman for GIC didn’t immediately respond to a request for comment. Meridian Capital Group’s Morris Betesh brokered the financing for JTRE. A spokesman for Meridian didn’t immediately provide a comment. There were no brokers in the lease transaction.