Goldman Sachs Leads $900M Financing on One Soho Square Office Property
Stellar Management has nabbed more than $900 million in debt to refinance an office complex in Manhattan’s SoHo neighborhood.
Goldman Sachs (GS) spearheaded the seven-year, fixed-rate loan for Stellar’s One Soho Square property, along with Bank of Montreal and Deutsche Bank, by securitizing the $730 million senior portion of that mortgage from a 2019 commercial mortgage-backed securities (CMBS) transaction. JPMorgan Chase supplied the mezzanine portion of the debt package, sources familiar with the transaction told Commercial Observer.
Details regarding the senior portion of the loan were first reported Friday by Commercial Mortgage Alert.
Cushman & Wakefield (CWK)’s Alexander Hernandez, Alex Lapidus, Meredith Donovan, Steve Kohn, Gideon Gil and Adam Spies negotiated the debt, sources said.
“One SoHo Square set the standard for Midtown South office by juxtaposing modern-day layouts, services and amenities with pre-war style at the nexus of Manhattan’s hippest two 24-hour neighborhoods – SoHo and Hudson Square,” said Ryan S. Jackson, vice president at Stellar Management. “The timing was right for restructuring our financing and Cushman & Wakefield’s exceptional team helped us get it done in record time.”
The Class A property is located on the border of SoHo and Hudson Square, featuring 15-story One Soho Square East and 13-story One Soho Square West. Larry Gluck’s Stellar acquired the former standalone buildings — located at 223 Spring Street and 161 Sixth Avenue, respectively — for $200 million in 2012 and later connected them into a singular office development.
The office complex houses a number of corporate offices, including Aveda, Getty Images, New York Magazine, The Atlantic and Next Model Management. Retail tenants include Trader Joe’s, CVS Pharmacy, and Torch & Crown Brewing Co.
Goldman also led the $900 million refinance for the property in May 2019, with the lender providing a $730 million senior loan, while Paramount Group lent $170 million in mezzanine debt.
Officials for Goldman Sachs did not immediately respond to a request for comment.
Andrew Coen can be reached at firstname.lastname@example.org.