Signature Bank Refis 777 Third With $155M Loan

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A joint venture between Sage Realty and The Travelers Companies has sealed a $155 million debt package to refinance an office property in Manhattan’s Grand Central neighborhood, Commercial Observer can first report.

Signature Bank provided the five-year loan with a five-year extension option on the JV’s 777 Third Avenue property. The financing will be used to repay an existing loan and fund future capital improvements at the 38-story tower, including improvements to the lobby. 

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Sage is the leasing and management arm of William Kaufman Organization, which has been landlord of 777 Third since building it in 1963. 

“It’s a very challenging capital markets time, particularly for office in New York City, but I think that really speaks to the ownership and relationships that we’ve had within the market,” Boris Katsman, Sage’s chief financial officer, said. “We’ve had a long-lasting relationship with Signature, and they know us from an operator standpoint, a sponsor standpoint and they trust us and they were able to step up and expand that relationship.”

Located between 48th and 49th Streets, the 484,600-square-foot property is 96 percent leased. The property received three lease renewals this past June from law firm Dewey Pegno & Kramarsky, recruiting firm Sheffield Haworth and Innovatus Capital Partners, a real estate and life sciences investor. 

“I think having such a stable ownership and a stable tenant base within the property helped close this deal,” Katsman said. “I think occupancy played a very big role along with sponsorship and quality of the asset.”

The loan for 777 Third Avenue comes four months after Sage secured a $127.5 million debt package from Acore Capital to refinance 77 Water Street, a 52-year-old office tower in Lower Manhattan. 

Signature Bank declined to comment.

Andrew Coen can be reached at acoen@commercialobserver.com