Orda’s 225 Park Avenue South Nearing $350M Recap With New Partners TPG, Sagehall
A mixed-use makeover could be in the building's future, sources said
By Cathy Cunningham May 19, 2025 7:00 am
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Orda Management is nearing a significant recapitalization of its office building at 225 Park Avenue South, Commercial Observer has learned.
As part of the recap of the vacant, 700,000-square-foot property — valued at $350 million today — TPG and Sagehall are coming in as new equity partners and the building’s debt is being restructured, sources told CO. Orda is remaining in the deal.
Newmark’s Adam Spies and Adam Doneger are leading the transaction, which is under contract and expected to close within 30 days.
The property — also known as the American Woolen Building, for its first tenant — sits on the corner of East 18th Street and encompasses the 19-story building at 225 Park Avenue South plus the 12-story building at 233 Park Avenue South.
Orda has owned 225 Park Avenue South for around 70 years. The company undertook an $80 million renovation of the property around a decade ago, according to Crain’s New York Business.
In July 2024, the property’s $235 million commercial mortgage-backed securities (CMBS) loan was transferred to special servicing due to the threat of imminent default. The transfer came on the heels of Meta — the parent company of Facebook and Instagram, and the building’s largest tenant — terminating its 200,000-square-foot lease at the property and moving to Vornado Realty Trust’s Moynihan Train Hall redevelopment. The building’s second- and third-largest tenants BuzzFeed and STV Inc. also vacated. Crain’s, citing a S&P Global report, noted the building’s valuation had dipped to $217 million in December, down from $750 million at the time of the CMBS loan’s origination in 2017.
In its vacant state, however, 225 Park Avenue South is a blank canvas and sources familiar with the recap said that its next chapter could possibly include a condominium component in addition to office use.
Sagehall — founded in 2020 by Sush Torgalkar and Lanhee Yung — has been making big moves in Manhattan, joining RXR in January to recapitalize 530 Fifth Avenue. The partnership infused $70 million of fresh capital in the transaction and also secured $110 million in new debt from ING Capital, as reported by CO. The same Newmark team also negotiated that recap.
TPG and Newmark declined to comment. Sagehall did not return a request for comment. Orda officials could not be reached for comment.
Cathy Cunningham can be reached at ccunningham@commercialobserver.com
