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’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
