Mack Real Estate Ups Debt on USQ Office Building in $78M Refi

The property is fully leased to WeWork

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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.

SEE ALSO: Bluestone, Mack Real Estate Provide $148M Refi for Six-Site NYC Redevelopment Portfolio

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.