MF1 Capital Provides $216M Loan on The Aire Residential Tower in New York City
Gotham Organization and The Carlyle Group purchased the 43-story glass skyscraper earlier this year from A&R Kalimian after a mortgage default
By Brian Pascus April 1, 2024 2:19 pm
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The Aire skyscraper at 200 West 67th Street just got a round of fresh financing.
Gotham Organization and The Carlyle Group, which purchased the 43-story, 210-unit multifamily building earlier this year for $265 million, have now secured $216 million in bridge acquisition financing associated with the purchase, Commercial Observer has learned.
Gotham and Caryle had closed the transaction with an all-cash purchase in January, but brought the loan to the market after the first quarter. The $216 million in bridge financing on the loan comes after “a highly competitive debt process,” according to a source close to the transaction.
New York-based lender MF1 Capital provided the financing, while CBRE (CBRE)’s Tom Traynor, Tom Rugg, Lawrence Britvan, and Adam Spengler arranged the financing on behalf of the sponsors.
The Aire has had a troubled history, as of late. The building garnered negative headlines last year when the tower’s previous owners, A&R Kalimian Realty, defaulted on a $194 mortgage provided by JP Morgan Chase in November. A&R Kalimian had developed and opened the glass tower back in 2013.
Even amid difficult debt issues, rents on the Upper West Side property remain high. Studios command $4,230 per month, while three-bedroom units in the building go for $14,500, according to available data from Streeteasy.com.
The original asking price on the bridge loan request was $195 million, or roughly 75 percent of the debt, according to a source close to the deal. However, due to the competitive nature of the bidding process, the final proceeds shook out to $216 million, a loan-to-debt ratio of roughly 81 percent on the purchase price.
Gotham Organization and The Carlyle Group did not respond to a request for comment
Brian Pascus can be reached at bpascus@commercialobserver.com
