Citi Provides $155M CMBS Loan for Chelsea Property
Loan will fund improvements to the 578,000-SF mixed-use office property
By Brian Pascus April 9, 2024 12:01 pm
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Williams Equities has secured a $155 million commercial mortgage-backed securities (CMBS) loan for its 576,000-square-foot mixed-use office property in Manhattan’s Chelsea neighborhood.
Citi Real Estate Funding provided the five-year CMBS loan, which replaces existing debt and is expected to fund building improvements and enhanced amenities.
Ackman-Ziff’s Simon Ziff and Russell Schildkraut negotiated the debt, while Citigroup (C)’s Joe Dyckman represented the lender.
“We firmly believe in and continue to finance New York City mixed-use with office for great sponsors,” said Ziff in a statement. “This sponsorship obviously meets that test.”
Located at 28-40 West 23rd Street, the 12-story, two-building, 578,105-square-foot mixed use property was built in 1911 and stands in the heart of the famous Flatiron District off Manhattan’s Sixth Avenue.
Tenants include retail anchor Home Depot — which signed an extension to lease the ground floor, lower level and mezzanine of the building — as well as the offices of credit card firm Ramp and fragrance company Aramis, a division of Estée Lauder.
The new round of CMBS financing is principally scheduled to provide building enhancements at 28-40 West 23rd Street. Over the last several years, Williams Equities has built new lobbies for two different entrances into the building, but this next batch of funding is expected to finance an updated atrium, skylights, and a new roof deck. Ownership also plans to construct a new triplex penthouse at the 40 West 23rd Street section of the building.
Brian Pascus can be reached at bpascus@commercialobserver.com
