As office leasing wrapped up a blockbuster first quarter, lenders put big money into Manhattan office buildings last month.
The asset class accounted for the two biggest real estate loans made in March, including at Milstein Properties’ rebranded 22 Vanderbilt in Midtown. Another large loan refinanced the office portion of the landmarked Woolworth Building in Tribeca.
Multifamily buildings, a New York University dormitory, a Queens life science building and a luxury condo project rounded out the list of the city’s 10 biggest real estate loans in March. The Real Deal broke down the month’s five largest loans in Manhattan and the top five in the outer boroughs:
Class A cash | $645M | Midtown
JPMorgan Chase provided a $645 million loan for Milstein Properties’ rebranded 22 Vanderbilt, the Class A Midtown office tower across the street from SL Green’s One Vanderbilt. The fresh financing replaced a $650 million loan from Citibank. Milstein rebranded the property, formerly known as 335 Madison Avenue, in 2022 following a major renovation designed by SHoP Architects. The upgrades included a new lobby, a fitness and wellness club, and several dining, conference and event venues. Last year, the building landed a slew of new tenants, including Consulting firm Bain & Company, which took 235,000 square feet across four floors.
Woolworth windfall | $279M | Tribeca
Blackstone Group provided a $278.9 million loan to the Witkoff Group and Cammeby’s International Group to refinance the office portion of the famed Woolworth Building at 233 Broadway. The debt replaced a previous $256 million issued in 2015, also by Blackstone. Iron Hound Management represented Cammeby and Witkoff in the deal. Steve Witkoff and Ruby Schron purchased the entirety of the Woolworth Building in 1998 for $137.5 million. In 2012, an investment group led by Alchemy Properties purchased the top 30 floors of the 60-story building for $68 million and proceeded to create luxury condos, which were not involved in the refinancing.
Affordable housing haul | $260M | East New York
The city Housing Development Corporation and Department of Housing Preservation and Development provided $259.7 million to Gotham Organization, Monadnock Development and nonprofit Christian Cultural Center for their massive East New York affordable housing community at 12020 Flatlands Avenue. The loan is part of a $315 million construction loan package and includes up to $144 million in construction tax-exempt bonds and $116 million of long-term below-market-rate debt. It will fund the construction of 453 rental units at the site, which used to be a vacant parking lot at the church’s 10-and-a-half-acre Brooklyn campus. Syndicator Red Stone Equity Partners also raised about $151 million in low-income housing tax credit and brownfield credit equity financing provided by JP Morgan Chase.
Rental refi | $231M | Lincoln Square
The state Housing Finance Agency provided a $231 million loan to Glenwood Management for its large rental building in Manhattan’s Lincoln Square. The state public benefit corporation for the 339-unit rental at 160 West 62nd Street. The fresh financing replaced a $260 million loan from the NYS Housing Finance Agency in 2014, around when leasing began at the 54-story tower known as Hawthorn Park. That mortgage helped to finance a portion of the purchase cost, construction and improvements. The developer acquired the site in 2011 from Fordham University for $125 million.
Multifamily moolah | $210M | Sunset Park
S3 Capital provided a $210 million loan to Watermark Capital for a multifamily development in Sunset Park. Wolfe Landau’s Watermark and Marvin Azrak’s Maguire Capital took over the vacant site at 6208 Eighth Avenue in 2023 and plan a 28-story, 497-unit apartment complex that will include 100,000 square feet of retail space. The property was previously owned by a group of Flushing-based developers that planned a 1.3 million-square-foot project including a three-story mall, two 15-story residential buildings, a 17-story office and a 150-room hotel. The project became tangled in a web of lawsuits by investors after it failed to make it through the city’s land use review process.
Dorm dollars | $178M | Tribeca
Apollo Global Management provided a $178 million loan for Corigin Real Estate Group’s New York University dormitory at 80 Lafayette Street in Tribeca. The 17-story, 1,100-bed property, called Lafayette Hall, is the largest student housing facility at NYU. The refinancing retires a $161.3 million Freddie Mac loan originated by Prudential Mortgage Capital Company in 2015. Prior to that, Bank of America securitized a $110 million mortgage on the property in 2005.
Hillside haul | $155M | Jamaica
Arbor Realty provided a $155 million loan to an entity tied to Moshe Braver for the development site at 147-35 95th Avenue in Jamaica, Queens. The Brooklyn landlord wrapped up construction last fall on a 25-story, 521-unit rental, called Hillside Tower. The 720,248 square feet building includes commercial space and enclosed parking. Braver secured a $148 million in construction loan from Dwight Mortgage Trust in February for the second phase at his multifamily project at an adjacent parcel.
One Blue bucks | $153M | Greenpoint
BNP Paribas provided a $153 million loan for Brookfield Properties’ Greenpoint rental building, One Blue Slip. The fresh financing for the 359-unit building replaced a $170 million loan from Bank of Nova Scotia. The rental tower is part of a 22-acre site along the Brooklyn waterfront developed by Brookfield and Park Tower Group.
Innoloan | $141M | Long Island City
Deutsche Bank provided a $140.8 million loan to GFP Real Estate, King Street Properties and Carlyle Group and for their Long Island City life science building, Innolabs. The fresh financing for the 213,000-square-foot life science hub at 45-18 Court Square West replaced a $156 million construction loan from ACORE Capital. NYU Langone inked a lease last year for 105,000 square feet, more than a third of the Court Square property.
Garden gold | $125M | Gramercy Park
BDT & MSD Partners loaned $124.8 million to Legion Investment Group and Gindi Capital for their planned 20-story condo development on Gramercy Park. The loan is part of a $335 million construction loan from BDT & MSD Partners and Eyal Ofer’s Global Holdings for the six-parcel assemblage at the corner of Third Avenue and 21st Street. Buyers will have access to the coveted private garden. The project, under the address 38 Gramercy Park East, is shaping up to be the largest new development along the park in a century.
Read more
Milstein’s rebranded 22 Vanderbilt lands five office leases
Witkoff, Cammeby’s refi Woolworth Building
Gotham, Monadnock nab $315M loan for massive East New York project