Apple Bank Provides $42M Refi for Kaufman Organization’s Nelson Tower

The Kaufman Organization has secured $42 million to refinance Nelson Tower, a 46-story, 510,000-square-foot Art Deco office building in the heart of Midtown Manhattan, Commercial Observer can first report. 

Apple Bank provided the debt, while the JLL Capital Markets team led by Aaron Niedermayer arranged the transaction. 

Niedermayer noted in a statement that Apple Bank was attracted to the deal due to Nelson Tower’s location in the Penn District, along with the positive leasing metrics of the Midtown neighborhood, the experience of the Kaufman Organization, and low leverage on the asset.  

“The Nelson Tower building is a highly accessible, well-performing Midtown asset with durable tenancy and generational sponsorship,” said Niedermayer. 

Located at 450 Seventh Avenue at the corner of West 34th Street, beside Pennsylvania Station and the recently constructed Moynihan Train Hall, Nelson Tower opened in 1930 and was most recently renovated in 2019.  

The Kaufman Organization purchased the building in 1946 and has since invested into capital improvements, which include a new lobby, modernized elevators, conference suites, and a rooftop lounge and terrace with striking views of Manhattan.

In a statement, Steve Kaufman of the Kaufman Organization called Nelson Tower “a cornerstone of our portfolio for decades,” and noted that the asset is expected to benefit from the $7 billion Penn Station redevelopment project set to begin in 2027 and be overseen by the U.S. Department of Transportation. 

“This financing reflects both the strength of the asset and the continued evolution of the Penn District,” Kaufman added. “We believe the property is well positioned to benefit from the neighborhood’s ongoing transformation.”

Brian Pascus can be reached at bpascus@commericalobserver.com.