Manhattan’s ten largest home loans in August totaled $3.2 billion, nearly triple July’s $1.2 billion.
A construction loan for the Terminal Warehouse in Chelsea topped The Real Deal’s list of loans, while near-zero interest rates put building owners in a position to refinance debt rather than sell assets at a discount.
Office buildings made up most of the big refinance loans last month, although a modular hotel on the Lower East Side and an apartment building in Hell’s Kitchen also got loans.
Here are the biggest home loans in the borough in August:
1. Warehouse Whopper | $1.25 billion
L&L Holding Company and Columbia Property Trust closed $1.25 billion loan for the 1.3 million square foot terminal warehouse on 11th Avenue between West 27th and 28th Streets in Chelsea. Blackstone, Goldman Sachs and KKR loaned out the senior $731 million portionwhile Oaktree Capital Management and Paramount Group lent at the mezzanine level.
2. Loving that low interest | $860 million
Paramount Group arrives $860 million from Wells Fargo and Morgan Stanley to refinance outstanding debt maturing in November at 1301 Sixth Avenue in Midtown. Senior loan debt amounted to $710 million. Each lender will provide a mezzanine loan of $75 million. Paramount lost tenant Barclays, which had leased a third of the building, in 2020.
3. A Refi crosses it | $235 million
Silverstein Properties’ River Place, a luxury rental development in Hell’s Kitchen, has received a $235 million bridge loan from Greystone Loan Servicing to replace a $230 million Fannie Mae loan from Wells Fargo in 2014. Silverstein built the 41-story, 921-unit rental building at 650 West 42nd Street near the Hudson River, in 2000. Two-bedroom units currently cost around $6,500.
4. CMBS Me | $215 million
Bobby Zar’s ZG Capital Partners scored another refinancing at 1450 Broadway. The subsidiary of the Zar group organized a $215 million commercial mortgage-backed securities loan from Bank of Montreal with a five-year interest-only term. The loan replaces a 2018 refi from Goldman Sachs of $170 million, which replaced a $114 million loan from UBS Real Estate Securities. ZG Capital bought the 42-story property of a joint venture of Moinian Group, Chetrit Group and Edward J. Minskoff Equities in 2011 for $204 million.
5. Oldie But Goodie | $148 million
LH Charney Associates landed a $148 million refinancing loan for a 387,000 square foot office building at 1410 Broadway. Pacific Coast Capital Partners provided the debt. Manhattan office landlords, especially those with older buildings, are under pressure to upgrade in order to attract tenants. LH Charney, owner of the property for four decades, is no exception.
6. Home Improvement Honey | $134 million
Gazit Horizons, a subsidiary of the Israeli investment company Gazit Globe, refinanced its 120,000 square foot retail building at 410 East 61st Street with $134.4 million in bonds, secured by a 20-year lease with home improvement giant Home Depot. Mesirow Financial issued and placed the bonds. Home Depot’s lease, signed last October, was Manhattan’s largest by size and rent in 2020.
7. CMBS Me Too | $125 million
David Werner got $125 million in CMBS financing — debt that is owned by investors rather than a bank — at 235 East 42nd Street in Midtown. Werner took over the lease from Pfizer as part of a $360 million agreement in 2018 that included fee interest at 219 East 42nd. The loan replaces $125 million from Morgan Stanley. Pfizer will move its headquarters to Tishman Speyer’s Spiral in Hudson Yards.
8. Condominium costs | $100 million
CBSK Ironstate and Arel Capital, the developers of 1228 Madison Avenue, landed a $100 million refinance loan from Madison Realty Capital. Financing for the Robert AM Stern-designed Upper East Side condo development included $70 million in senior financing to replace a $65 million construction loan made by Deutsche Bank in 2019.
9. Modular Mathematics | $83 million
CitizenM hotels have been awarded a $82.5 million refinance the JPMorgan Chase loan on its modular hotel in 189. The loan replaces an $82.5 million debt that HBSC issued in 2018 after construction was completed.
10. Soho Shop | $81 million
Boston-based AEW Capital Management landed $81 million in senior loan financing, provided by Ares Management, for its purchase of a half-new, half-renovated office building in Soho for $86.2 million. AEW purchased the 98,400 square foot building at 163 Varick Street, also known as 60 Charlton Street, from APF Properties in July.