Dealmaker: JLL Closes $185M in New York

February 19, 2016

JLL, Chicago, secured $125 million in acquisition and pre-development financing and $45 million in preferred equity for 20 Broad Street, New York.

A Metro Loft affiliate plans to convert the 29-story office building in Manhattan’s Financial District to a Class A mixed-use multifamily and retail asset. An investment bank and AllianceBernstein LP, New York, provided the financing and Vanbarton Group, New York, supplied the preferred equity.

Managing Director Max Herzog led the JLL team. “With Manhattan land and property prices on the rise, it’s challenging to identify residential rental projects that make economic sense,” he said. “Metro Loft was able to secure one of the best-located properties in the booming financial district to convert it into a profitable Class A rental property.”

Herzog said lenders responded very favorably to Metro Loft’s experience converting large downtown office properties into multifamily properties. The completed property will include more than 500 multifamily units and up to five floors of retail space featuring frontage on three streets.

Elsewhere in Manhattan, JLL sold a $60 million performing mezzanine loan secured by two Upper East Side assets. New York owner and developer RFR purchased the loan, collateralized by the 150-room The Mark Hotel and an 8,000-square-foot townhouse at 1000 Madison Avenue.

JLL Managing Director Dustin Stolly, International Director Jeffrey Davis and Senior Vice President Brett Rosenberg closed the deal.

“This sale was a very strong piece of paper, with best-in-class collateral that included a luxury hotel, ground-floor Madison Avenue retail and a valuable townhouse,” Stolly said.

Davis noted that RFR purchased a portion of the debt capital stack with significant duration, “which is difficult to replicate in today’s market.”

Mark Weiss, Head of Capital Markets with RFR, said the hotel, retail, remaining co-op units and townhouse added up to a very valuable asset. “We view this acquisition as a way to secure significant yield in an increasingly competitive market,” he said.