Dealmaker: Cushman & Wakefield Closes Two in Manhattan

Cushman & Wakefield, New York, closed two deals in Manhattan, selling St. Luke’s Pavilion Portfolio for $111.5 million and securing $12 million for an East Village mixed-use property. 

Representing seller Mount Sinai St. Luke’s Hospital, C&W sold St. Luke’s Pavilion Portfolio, a five-building 205,000-square-foot package, to Delshah Capital, New York, for $543 per square foot. C&W President of Investment Sales Paul Massey, Senior Director Hall Oster, Senior Associate Teddy Galligan and Associate Director Andrew Berry closed the deal.

Eastern Consolidated Managing Directors Adam Hakim and Sam Zabala and Director James Murad arranged a $60 million first mortgage bridge loan from Bank of the Ozarks to finance the acquisition. Square Mile Capital, New York, provided a $17.5 million mezzanine loan.

“This portfolio consists of five architecturally significant elevator pre-war buildings on West 113th and 114th Streets that can be converted to residential use as-of-right,” Hakim said. “When completed, the conversion will offer 199 rental apartments.” 

Massey said the sale will allow the hospital to reinvest in its core facilities. “[And] the purchaser will have the opportunity to repurpose a substantial and distinct portfolio in one of New York City’s most supply constrained markets,” he said. 

In the East Village, Cushman & Wakefield Capital Services Director John Leslie secured $12 million from BankUnited for 111-113 East 12th Street. The five-year loan bears interest at 3.25 percent with a 30-year amortization schedule. 

“We were able to recapitalize some existing debt with a rate and term far more attractive and put the owner in a better position to leverage the property in the future,” Leslie said. He noted that C&W intern Patrick Rhea assisted.

The contiguous mixed-use buildings total 22,500 square feet and include 16 residential units and two commercial units.