The city's top 10 largest real estate loans issued in December ($842 million in suburban boroughs, $765 million in Manhattan) This was a significant decrease compared to the same period in 2022, when it was $1.7 billion. .
Blaming funding costs: Since December 2022, the federal government's benchmark interest rate has increased by more than 1.2 percentage points, continuing an increase that began in March of the same year.
In addition to higher borrowing costs, banks that finance office and rent-stabilized properties are facing balance sheet problems and have been forced to cut back on lending.
TRD's The count of the month's largest commercial real estate loans does not include debt refinances made by the same financial institution and loans made by municipal housing authorities. Details of the city's largest real estate loan in the final month of 2023 are as follows:
All | $430 million | Downtown Brooklyn
Silverstein Capital Partners has purchased the senior bonds of JDS Development's Brooklyn Tower, the borough's first skyscraper and the city's tallest outside of Manhattan. As the project's original mezzanine lender, Silverstein was in a position to reduce the borrower's debt service by consolidating the project's loans. Silverstein assumed approximately $430 million in senior loans, construction and acquisition debt, for the 1,066-foot tower at 9 DeKalb Avenue in downtown Brooklyn. Silverstein originated a $240 million mezzanine loan for the project in 2019.
The transaction replaced Otera Capital as senior lender. The tower has 150 condominium apartments, 400 rental units, and 100,000 square feet of commercial and retail space. Last year, JDS tried to sell the leased portion of the building.
Pricing for this condo is similar to Manhattan, as is height. A one-bedroom, one-bathroom unit listed for $2,240 per square foot is under contract, according to StreetEasy. The penthouse is priced at $2,600 per square foot. On the rental floor, one-bed, one-bath apartments are listed for $5,310 to $6,185 per month.
Farewell, My Sunshine | $220 million | Midtown
Mexico's Imbursa Bank has loaned Gary Barnett's Extel Development $220 million to build a 534-key hotel in the Diamond District. Barnett scooped up the property at 32 West 48th Street in 2018 for $40 million.
Despite the court ruling in Extell's favor, the company is still trying to remove a window air conditioner that protrudes from Jack Elo's adjoining building at 29 West 47th Street. Developers say Elo intentionally delayed construction of the 33-story hotel because it could result in Elo having to brick up 10 floors of the building's east-facing windows. claims.
Barnett submitted plans for the 169,000-square-foot hotel about three years ago. Construction financing was approximately $175 million.
Buy cheap | $250 million | Midtown
An affiliate of Fortress Investment Group has refinanced the Sheraton Times Square Hotel, owned by MCR Hotels and Andrew Farkas' Island Capital, with a $250 million four-year adjustable-rate loan. The debt was suspended until Fortress intervened.
The 1,780-key hotel at 811 Seventh Avenue is one of the city's largest, with 61,800 square feet of office space and 23,000 square feet of ballroom. MCR and Farkas purchased the hotel in 2022 for $373 million. The hotel was last sold in 2006 for $738 million.
Bond, 365 Bond | $166 million | Gowanus
Lightstone Group, in partnership with JLL Real Estate Capital, secures a $166 million refinance of 365 Bond Street in Gowanus, including a new $56 million mortgage from Freddie Mac did. The loan term is 5 years, with a fixed interest rate.
Lightstone developed a 430-unit apartment complex in 2016. The building had helped secure a pool of commercial mortgage-backed securities from Goldman Sachs, which was looking to reduce its exposure to commercial real estate debt. Gowanus was a hotbed for real estate investment until the 421a tax break expired.
This was one of two large loans Lightstone Group secured in December. The other one is below.
Darlehen, J.A. | $120 million | Midtown
Deutsche Bank has refinanced the Hilton Hotel New York Times Square West, built by Sam Chan's Maxam Group at 354 West 40th Street in Midtown, for $120 million. The German bank first refinanced the property's debt in 2016 with a $215 million loan, which was taken over by Apollo Global Management before Goldman Sachs and UBS split the loan. The hotel is 200,000 square feet, 35 stories, and has 612 guest rooms. Room rates range from $165 to $225 per night.
Showing Some Moxie | $110 Million | Lower East Side
The insurance company owned by Apollo Global Management has refinanced the Moxy Lower East Side Hotel with a $110 million loan to Lightstone Group. The 303-key hotel, part of Marriott's Bonvoy brand, opened in late 2022 after he secured construction financing from MSD Partners and Axos Bank the previous year.
Room rates are less than $200 per night. A view of the city can reach $300 on weekends. MSD Partners, a private creditor affiliated with Michael Dell's family estate, has bet on Moxy and the resurgence of budget tourism from a $1.1 billion real estate investment fund to which the Dell family has contributed $300 million. . OZK Bank originated the acquisition loan for Lightstone to purchase the development site in 2018 for approximately $28 million.
421a-OK | $85 million | Williamsburg
Valley National Bank has loaned David Bistorisar's Clipper Equity $85 million to refinance construction debt for Casa Hope, a 143-unit apartment complex at 130 Hope Street. Valley replaced Leumi Bank as lender. The financing includes a new $16 million mortgage. The de Blasio administration approved Bistorisar's 421a development plan in March 2020, just days before going into lockdown.
The median rent for new developments in Brooklyn was $3,900 per month in December, down 2% from a year earlier, according to a report from Douglas Elliman. One-bedroom, one-bathroom units at 130 Hope Street have recently been listed for $4,000 to $4,500 a month. There are no units listed as available for lease.
What's coming up | $84 million | Flushing
Argentic Investment provided $84 million for Blumenfeld Development's acquisition of two self-storage facilities in Queens. Blumenfeld purchased 34-09 College Point Boulevard for $72 million, or about $450 per square foot, and 62-05 30th Avenue for $51 million, or about $565 per square foot.
Per capita self-storage in New York remains low, even though supply has increased by 50% over the past decade, according to a report from Marcus & Millichap. The Bronx led the way in self-storage rent growth last year with a 1.5% increase, followed by Brooklyn with a 1.1% increase. The citywide average price was $2.66 per square foot, according to the report.
Dobro Act | $77 million | Downtown Brooklyn
Deutsche Bank has granted Ohana Real Estate $77 million to purchase the Hilton and three commercial condominiums at 140 Schermerhorn Street in downtown Brooklyn. California-based Ohana paid Tidal Real Estate $110 million to buy the property.
According to the building offering plan, the hotel will have 196 guest rooms on 104,000 square feet, with 14,000 square feet of condominiums. In 2022, Ohana purchased the Tillery Hotel in downtown Brooklyn in a bankruptcy auction from a company associated with Isaac Hager.
PUltimate Vienna | $65 million | Upper West Side
Starwood Mortgage Capital is acquiring Hudson Park, a 172-unit apartment complex at 323 W. 96th Street owned by Joel Wiener's Pinnacle Group, which includes a new $11 million mortgage. I refinanced it with a $10,000 loan.
The loan will cover Pinnacle Group's land lease and 50 percent commission interest on the Upper West Side property. This replaces a loan from Mishmeret Trust, a company that manages corporate bonds sold on the Israeli stock market to securitize U.S. real estate.
In 2017, Pinnacle raised $271 million on the Tel Aviv Stock Exchange under the name Zarasay Group, the same year Weiner was named to the Bloomberg Billionaires List. According to documents filed with TASE, Pinnacle had 9,185 units in its portfolio.
Rich Bockmann contributed reporting.
