Ladder Capital Provides $30M Refi for Midtown Manhattan Office Building

MJ Orbach Associates has landed a $29.5 million loan to refinance an office building in Midtown Manhattan, Commercial Observer has learned.

Ladder Capital supplied the loan for the real estate investment firm’s 176,000-square-foot property at 260 West 39th Street. 

Arrow Real Estate Advisors arranged the loan with a team that included Morris Betesh, Jack McPhail, Alex Ellman and Joseph Kean.

“Office remains the most polarizing asset class in commercial real estate right now, and the reality is that many lenders are not engaging with the sector at all,” Betesh, founder and managing partner at Arrow, said in a statement. “For borrowers who have a credible business plan, there is capital available, but sourcing it requires targeted outreach and a lender who can underwrite to the fundamentals of the specific asset rather than painting every office building with the same brush.

Betesh also noted that Ladder Capital “recognized the strength of the in-place cash flow, the granularity of the tenant base and the accretive leasing runway at this basis” when deciding to conduct the financing. 

Located in Manhattan’s Garment District between Seventh and Eighth avenues, the 19-story building is leased to a mix of tenants in the fashion, design, creative and professional services sectors. The 1926-built property also houses ground-floor retail space.

Ladder Capital and MJ Orbach Associates did not immediately return requests for comment.

Andrew Coen can be reached at acoen@commercialobserver.com.