J.P. Morgan, Deutsche Bank Lend $116M on Meadow Partners’ Meatpacking Office Buy
By Cathy Cunningham January 6, 2021 9:00 amreprints
Meadow Partners sealed its acquisition of the leasehold interest in 860 Washington Street with a $116 million loan from J.P. Morgan and Deutsche Bank (DB), Commercial Observer has learned.
The firm paid roughly $230 million for the Meatpacking District office asset, according to The Wall Street Journal, which first reported the sale. The transaction is one of the few office trades to close since the pandemic hit.
The 10-story office tower, between West 13th and 14th streets, comprises 117,000 square feet. It includes nine stories of office space, and its ground floor is home to Tesla’s only Manhattan store.
A new ground lease was structured as part of the sale, allowing Romanoff Equities — one of the previous owners — to retain an ownership interest in the property.
Cushman & Wakefield (CWK)’s Gideon Gil, Alex Hernandez, Lauren Kaufman and Emily Johansen negotiated the financing. C&W’s Kevin Donner, Adam Spies, Doug Harmon, Marcella Fasulo, Michael Collins and Caroline Hill brokered the sale.
“This financing represented an exceptional opportunity for lenders, demonstrating that the combination of experienced sponsorship; longer-duration, weighted-average lease terms; and a rent roll of credit-worthy tenants remains very attractive to lenders,” Gil said.
The property was built in 2016 and designed by James Carpenter Design Associates. It features floor-to-ceiling glass windows, views of the Hudson River and High Line to the West, and cityscape vistas to the South and East.
“The asset’s quality, central location in the Meatpacking District and conservative leverage request attracted interest from a variety of lenders,” Gil said of the transaction’s draw, adding that C&W’s investment sales team “was pivotal in putting this transaction together.”