JLL Secures $762M in New York
JLL, Chicago, secured $762 million for two Manhattan properties.
JLL Managing Director Aaron Appel, Executive Vice President Michael Diaz and Senior Vice President Mark Fisher secured $660 million for the American Copper Buildings at 626 First Avenue.
AIG, New York, provided a $500 million senior loan to sponsor JDS Development Group, New York. Apollo Global Management and SL Green, both headquartered in New York, provided a $160 million mezzanine loan. The interest-only financing carries a three-year term.
“This deal represents the appetite investors have for product that fulfills the huge demand for high-quality multifamily assets in Manhattan,” Appel said. “Due to the building’s 421-a tax abatement designation, the towers were able to be constructed in what would otherwise have been a prohibitive funding environment.”
Located along the East River waterfront, the property’s 41-and 48-story towers are connected by the first sky bridge constructed in Manhattan in 80 years. The buildings also include 13,500 square feet of ground floor retail space.
In Greenwich Village, Appel, Fisher and JLL Managing Director Jonathan Schwartz secured $102 million from Mesa West Capital, Los Angeles, for 817 Broadway. A partnership between Taconic Investment Partners, New York, TH Real Estate, London, and Squire Investments, New York, acquired the property in November 2016.Schwartz said the loan included funds for extensive capital improvements and a re-tenanting program for the 15-story asset.
“This financing allows strong sponsorship to transform 817 Broadway into a Class A asset that will benefit from its location in one of the world’s premier office markets,” he said. Occupying the southwest corner of 12th Street and Broadway, 817 Broadway sits just south of the Midtown South submarket’s technology and media cluster, where office vacancy recently fell to 6.7 percent–the lowest in Manhattan.
“We expect financing to continue to be available as sponsors look to enhance assets to cater to the tech, media, fashion and financial tenants that have grown Midtown South’s rent basis,” Schwartz said.
Appel noted that the proved how strong Midtown South’s office market is. “Investors will continue to covet well-located assets with value-add potential as they look to capitalize on strong rent growth trends,” he said.
