Mack Real Estate Ups Debt on USQ Office Building in $78M Refi
The property is fully leased to WeWork
By Matt Grossman November 15, 2018 2:37 pmreprints
Mack Real Estate Credit Strategies has lent $77.5 million to refinance a Union Square building that’s fully leased to WeWork, sources told Commercial Observer today.
The building, at 88 University Place between East 11th and East 12th Streets, is owned by an investment group controlled by Iranian-Israeli fashion designer Elie Tahiri. Built in 1908, the 11-story building rises above ground-floor retail space that’s currently vacant, according to data from CoStar.
Meridian Capital Group arranged the debt on Tahari’s behalf, a spokesman for the debt brokerage said.
The entirety of the building’s WeWork space has been subleased to IBM.
Mack’s new loan on the building upsizes a previous 2015 transitional loan, also from the New York City-based lender. Proceeds from that $70 million financing went towards refurbishing the building’s elevators and common areas, improving the lobby entrance, and making mechanical and HVAC upgrades.
Officials at Mack Real Estate declined to comment.