Winter Properties Nabs $38M Life Co. Refi for NoMad Office Property
By Cathy Cunningham May 2, 2019 1:29 pm
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Winter Properties has scored a $37.5 million, 10-year fixed-rate loan from Principal Real Estate Investors for its mixed-use property at 3 East 28th Street, Commercial Observer has learned.
Cooper-Horowitz’s Richard Horowitz, David Horowitz and Justin Horowitz arranged the financing. Principal Real Estate’s Rob Dirks—a senior investment director at the company—negotiated the transaction on behalf of the lender, while Winter Properties COO Jay Stark led the deal from the sponsor’s side.
The 12-story, 66,447-square-foot property was built in 1912. Winter Properties has owned the asset—between Madison and Fifth Avenues—for more than 50 years.
Over the past two years, the company has spent around $21 million renovating and redeveloping the building, with recent upgrades including a brand new storefront and lobby as well as a private rooftop terrace. The property was reimagined by Morris Adjmi Architects to have a modern, loft feel while still incorporating the building’s historical features, and office spaces were upgraded to appeal to a variety of TAMI tenants.
The loan from Principal Real Estate——the real estate investment arm of Principal Global Investors— refinances $20 million in previous construction debt on the property.
Since completion of the renovation, only the 5,575-square-foot sixth floor remains available for lease. Quality Eats occupies its retail component, which comprises 3,650 square feet on the ground floor as well as 1,470 square feet on the lower level. Winter Properties has re-tenanted the majority of the office component with tenants such as Knotel and Senator International.
Officials at Principal Real Estate couldn’t immediately be reached for comment. Officials at Winter Properties did not immediately return a request for comment.
