Starwood Provides $301M Refi on Brooklyn Office & Macy’s Building

Tishman Speyer has secured $301 million to refinance The Wheeler, a 622,000-square-foot, mixed-use office building in Downtown Brooklyn built atop a four-story Art Deco Macy’s department store that opened in 1929. 

Barry Sternlicht’s Starwood Property Trust provided the financing, which replaced a 2021 loan from Starwood of the same amount, according to Crain’s. No brokers were listed on the transactions. 

The Real Deal first reported news of the financing.  

“Tishman Speyer and Starwood Property Trust have worked collaboratively on a refinancing for the Wheeler,” said Bud Perrone, a Tishman spokesperson.

Tishman purchased a stake in 422 Fulton Street, which was the original site of Abraham & Straus department store as far back as 143 years ago, in 2015 for $270 million. The firm received a $194 million loan from Bank OZK (OZK) in 2017 to renovate the building, where it eventually added 10 floors of office space in 2020, according to TRD. 

The current mixed-use development houses a Macy’s across the first four floors within the original Gilded Age facade, while the brick-encased office building known as The Wheeler stands 10 stories above it.  

Despite the historic nature of the structure, the building is not currently landmarked. St. Francis College leases floors five, six and seven and is currently the building’s only tenant. 

Starwood did not respond to requests for comment. 

Brian Pascus can be reached at bpascus@commercialobserver.com