TD Bank Funds $35M Refi for New Midtown South Rental Building

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New York City’s Kahen Properties has pinned down a $34.5 million refinancing on a residential rental building it controls in Midtown South, according to documents filed today in city property records.

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The loan, from TD Bank, refreshes $22.5 million in development financing on the tower, at 145 Madison Avenue between East 31st and East 32nd Streets, while also tacking on $12 million in new leverage. TD Bank was behind the first round of debt as well, in a previous deal from mid-August 2016.

The 23-story building, called The Mason, brought 70 new rental units to the burgeoning residential market north of Madison Square Park when construction finished last year. The building has two private outdoor spaces for residents—one on the roof and one on a mezzanine terrace—as well as an exercise room and a bike storage area.

This month, a new renter leased a studio apartment on the building’s 21st floor for $3,800 per month, according to data from StreetEasy. A two-bedroom unit on the same story went for $6,200.

Rents have inched upwards for the submarket even as more supply comes online, according to research by MNS, a Brooklyn residential brokerage. Monthly prices for studio apartments in doorman buildings in Murray Hill—the neighborhood in which MNS includes The Mason—rose 11 percent in the year between February 2018 and February 2019, to an average of $3,009. One-bedroom units followed a more modest trajectory, growing 3.9 percent to $3,849.

An executive at Kahen declined to comment on the refinancing, and a TD Bank representative did not immediately respond to an inquiry.