Bayview Lends $29M on New York-Presbyterian Hospital-Leased Property
By Andrew Coen April 23, 2024 3:13 pm
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ASG Equities has sealed $29 million of bridge financing for its mixed-use office asset in Bay Ridge, Brooklyn that will soon be anchored by New York-Presbyterian Hospital (NYP), Commercial Observer can first report.
Bayview Asset Management provided the three-year, floating-rate loan on the sponsorship’s 502 86th Street property, which lost its anchor tenant TJ Maxx during the peak of the COVID-19 pandemic before inking a new 30-year lease with NYP last year to occupy 19,336 square feet in the building’s office portion.
The loan covers $14.7 million to pay off existing debt along with an additional $14.3 million for future tenant improvements and leasing commissions.
“This loan serves as a validation of our leasing success and for our overall plan to populate this important stretch of Bay Ridge with much needed retail and other amenities to serve the community,” George Karnoupakis, head of asset management at ASG Equities, said in a statement. “We are thrilled to bring New York-Presbyterian’s world-class care to the neighborhood for decades to come.”
Ripco arranged the transaction with a capital markets team led by Steven Sperandio, Michael Fasano and Jake Weiss. The debt deal on $35 million of total costs equates to a 85 percent loan-to-cost and a 65 percent loan-to-value based on a $44.75 million stabilized value of the property, according to Ripco.
As part of the hospital’s arrival in the 43,254-square-foot building, ASG has agreed to invest more than $10 million in fresh cash equity to facilitate necessary capital improvements. The firm’s CEO, Raymond Gindi, is part of the family that founded the Century 21 department store chain.
Sperandio, executive managing director of debt & structured finance at RIPCO, said NYP is investing around half of the capital necessary for upgrades to the property to transform it into long-term medical office space.
NYP is slated to move into the property this October and begin paying rent in October 2025. Citibank takes up much of the ground floor portion of the property and Ripco’s leasing division is working on bringing in retail tenants to the space previously occupied by TJ Maxx, which Sperandio said should be aided by the presence of a major healthcare provider.
“With this new lease, there is only minimal vacant space left to backfill and prospective tenants will certainly view this building as a compelling option in the neighborhood given the recent anchor lease by a best-in-class healthcare tenant upstairs,” Sperandio said. “New York-Presbyterian’s lease was a game changer.”
The 502 86th property is a block from where ASG is planning a retail redevelopment at the site of a Century 21 store that closed in December 2020.
Officials at Bayview Asset Management did not immediately return a request for comment.
Andrew Coen can be reached at acoen@commercialobserver.com
