Mack Real Estate, Signature Bank Lend $83M on Sioni Group’s Garment District Buy
By Cathy Cunningham July 12, 2018 3:12 pm
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Ray Yadidi’s Sioni Group has scored $82.5 million in acquisition financing for its $105 million purchase of 240 West 40th Street—a 160,000-square-foot Garment District office and retail building that serves as DKNY’s headquarters, Commercial Observer has learned.
Mack Real Estate Credit Strategies provided a $20.5 million mezzanine loan in the deal, while Signature Bank provided a $62 million first mortgage.
The Real Deal first reported that Sioni Group was in contract to purchase the asset from Olmstead Properties, J.P. Morgan Chase and Jonathan Rose Companies. The previous owners purchased the property from AEW Capital Management and Colliers ABR for $85 million in 2015, using $60 million in debt from Aareal Capital Corporation.
Although four other tenants also call the building home, Donna Karan’s DKNY fashion label occupies 143,000 square feet of its space, including a 3,000-square-foot penthouse floor with a 25-foot ceiling and windows on three sides, utilized as a showroom by the designer according to The New York Times.
The DKNY lease expires in July 2020 and is not expected to be renewed. Sioni Group is therefore said to be considering various repositioning alternatives for the 13-story building, which features 12-foot ceiling heights throughout the office portion and also includes 16,000 square feet of ground-floor retail.
Officials at Sioni Group could not be reached for comment. A spokeswoman for Signature Bank didn’t return a request for comment. Officials at Mack Real Estate declined to comment.
