Citigroup Refis East Village Apartment Building With $45M CMBS Loan

Benchmark Real Estate Group has sealed $44.5 million of commercial mortgage-backed securities (CMBS) debt to refinance a multifamily property in Manhattan’s East Village, Commercial Observer has learned.

Citigroup provided the CMBS loan for the 61-unit, six-story apartment building at 194 East Second Street that Benchmark acquired from Skyline Developers in 2024 for $43 million.

JLL negotiated the refi with a debt advisory team led by Michael Zaremski, John Flynn and Clayton Ross.

“Demand for high-quality multifamily assets in Manhattan continues to be driven by exceptionally strong operating fundamentals, limited new supply and sustained renter demand,” Zaremski said in a statement. “194 East Second Street represents a rare combination of institutional-quality amenities.”

Located at the corner of East Second Street and Avenue B, the six-story property underwent renovations following Benchmark’s acquisition two years ago, including upgrades to individual units, common areas and amenity spaces, according to JLL. Community amenities include a fitness center, a sauna, a yoga studio, a Pilates room and a courtyard.

The 194 East Second property also features roughly 15,450 square feet of retail space anchored by Duane Reade.

“This transaction is a compelling example of how the debt capital markets are evolving to meet sponsor demand for well-leased, institutional-quality assets,” Ross said in a statement. “Citi’s multifamily-only CMBS portfolio creates a more efficient execution path for sponsors like Benchmark who own high-quality, stabilized properties.”

Citigroup and Benchmark Real Estate Group did not immediately return requests for comment.

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