German Lender Provides $150M Refi on New Office in Meatpacking District
The loan refinances existing debt on Aurora Capital Associates and William Gottlieb Real Estate's newly-built office and retail building, the Solar Carve Tower at 40 10th Avenue.
By Mack Burke June 30, 2020 12:00 pm
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Aurora Capital Associates and William Gottlieb Real Estate have secured $150 million from German commercial lender Deutsche Pfandbriefbank to refinance construction debt that was used to build their office and retail building, Solar Carve Tower, in the Meatpacking District, Commercial Observer has learned.
The proceeds took out roughly $120 million in previous debt provided by Bank OZK (OZK) in 2017 that was used to construct the building, according to city mortgage records.
Advisory firm Ackman-Ziff Real Estate Group sourced and arranged the financing on behalf of the joint venture, sources said. Ackman Ziff declined to comment on the transaction.
Aurora principal Jared Epstein did not respond to calls about the transaction. An official at William Gottlieb was not able to respond to an email inquiry before publication.
A representative for Deutsche Pfandbriefbank was not immediately available to respond to an inquiry.
Designed by Studio Gang Architects, the 10-story, 157,000-square-foot office and retail development at 40 10th Avenue — between West 13th and West 14th Streets — sits near the base of the High Line and is a short walk from Chelsea Market. It also sports about 20,000 square feet of outdoor space, according to data and additional information from CoStar (CSGP) Group.
Construction began in the first half of 2017 and was slated to wrap early last year, as CO previously reported. It was eventually completed and started welcoming tenants last August, and it is currently 55 percent leased, as per data from CoStar.
A month after opening, The New York Post reported that hedge fund RTW Investments, which focuses on investing in the biopharma space, signed a 10-year deal to take over the entire 7th floor, or just over 14,000 square feet, moving from their former offices nearby at 412 West 15th Street. The asking rents were at $170 to $210 per square foot, according to The Post.
In the spring 2019, Bloomberg reported that Barry Sternlicht’s Starwood (STWD) Capital Group, along with its affiliated REIT Starwood Property Trust, was in line to take over the entire 8th floor, with asking rents at $185 per square foot, as per CO’s previous reporting. According to a report from The New York Post last September, the investment firm was already building out its space.
And back in December 2017, the building sealed its very first tenant: luxury car brand Genesis Motors. The Hyundai subsidiary signed on for all 40,000 square feet of retail space at the ground floor and basement level, as CO previously reported. At the time, The Real Deal characterized the lease as one of the priciest of the year, with Genesis paying approximately $11 million in rent annually, or roughly $275 per square foot.
