Construction Finance

Greystone Bassuk Secures $200M for 525 West 52nd Street Development

525 West 52nd Street.

The Greystone Bassuk Group closed a $200 million construction-to-permanent financing facility on behalf of Taconic Investment Partners and Mitsui Fudosan Americas for a $330 million development in Hell’s Kitchen, Commercial Observer has learned.

The funds will go to the construction of a two-tower residential rental complex at 525 West 52nd Street that will contain a large affordable housing component. Read More


Quinlan, Lonicera to Build Brooklyn Heights Rental With $50M in Debt, EB-5 Equity

The plots where Quinlan's Remsen Street project will rise

Lonicera Partners and Quinlan Development are on the verge of putting together about $51 million in construction funds to build a residential rental property in Brooklyn Heights, Commercial Observer has learned.

The new project, targeted to local families, will hold 60 market-rate units, Tyler Wilkins, a partner at New York-based Quinlan, confirmed to Commercial Observer. Construction will be financed with a $36.6 million traditional mortgage from M&T Bank and $15 million in EB-5 funds, he said. Read More

Mortgage Observer

Morgan Stanley Refis Midtown Office Building

33 West 46th Street

Morgan Stanley provided a $19.5 million loan to refinance 33 West 46th Street, a Midtown Manhattan office building, according to CBRE, the broker on the deal.

The 38,259-square-foot, 1915 loft office building in Manhattan was sold to an LLC associated with the government of Argentina in 2009 for $11 million, according to city records and a source with knowledge of that deal. CBRE declined to comment on the ownership.  Read More

Mortgage Observer

M&T Finances Murray Hill Acquisition and Condo Conversion

The Montrose.

M&T Bank provided $66.3 million in financing to Gaia Real Estate for the purchase and planned conversion of a 22-story apartment building in Murray Hill to condominiums, Mortgage Observer has first learned.

The New York-based real estate investment firm bought the 97-unit property at 308 East 38th Street from UBS in late January for $75 million, a person familiar with the deal said on the condition of anonymity. Read More

Mortgage Observer

TF Cornerstone Scores Construction Loan for 606 West 57th Street

606 West 57th Street rendering.

TF Cornerstone landed a $384 million construction loan for its 80/20 rental development at 606 West 57th Street from a consortium of banks led by Wells Fargo, Mortgage Observer can exclusively report.

Buffalo, N.Y.-based M&T Bank and Germany-based Helaba also participated in the deal, with each lender taking about one third of the loan, sources said. The loan carries a term of four years plus extension options and is funded through 80/20 bond financing from the state Housing Finance Agency, according to two people privy to the negotiations. The three banks declined to comment. Read More

Mortgage Observer

William Kaufman Organization Upgrades 2 Gansevoort With M&T Loan

2 Gansevoort Street.

The William Kaufman Organization closed a $50 million permanent mortgage to upgrade its landmarked office building at 320 West 13th Street, recently renamed 2 Gansevoort Street, Mortgage Observer has first learned.

The five-year loan, provided by M&T Bank and arranged by Andrew Singer of The Singer & Bassuk Organization, will fund tenant and capital improvements at the Meatpacking District office property, according to the borrower. Read More

Mortgage Observer

Wells Fargo and BNY Mellon Lead $412M Construction Loan for Durst West Side Rental

A rendering of 625 West 57th Street. (Durst Fetner)

The Durst Organization scored a $411.5 million construction loan from a group of lenders led by Wells Fargo and Bank of New York Mellon Corp. to finance the development of its tetrahedron-shaped rental tower at 625 West 57th Street, sources familiar with the deal told Mortgage Observer.

The loan, which closed last week, carries a term of four years with a one-year extension option and “smoking interest rates,” one person familiar with the transaction said on the condition of anonymity. Read More

Mortgage Observer

Meadow Partners Acquires Former Menachem Stark Property in Williamsburg With M&T Loan

100 South 4th Street.

M&T Bank lent $36 million to help fund a recent Meadow Partners acquisition, taking a bet on a beleaguered multifamily loft building in Williamsburg, Brooklyn, sources familiar with the negotiations told Mortgage Observer.

The Midtown-based investment firm acquired the rental property at 100 South 4th Street, which was developed by the late Menachem Stark and his partner Israel Perlmutter for $52 million, on Aug. 7, taking it out of a five-year bankruptcy process. Read More


M&T Refinances 250 Mercer Street Through Freddie Mac Loan

250 Mercer Street

M&T Realty Capital Corp., the commercial mortgage banking subsidiary of M&T Bank, recently closed a $34 million Freddie Mac loan to refinance a 256-unit co-op building at 250 Mercer Street in NoHo, a spokesperson for the bank told Mortgage Observer. The borrower is listed in public records as Mercer Square Owners Corp.

Proceeds from the ten-year loan will go to capital improvements on the 16-story pre-war building and allow the shareholders to lock into a low fixed interest rate, according to the lender. Read More

Mortgage Observer

How Far Will They Go?

(Illustration by John Jack Perry)

When the heads of the Manhasset, Long Island-based real estate firm Milbrook Properties began seeking acquisition financing for a retail strip in Marietta, Ga., they called on People’s United Bank, a relationship lender they had worked with on nearly 10 deals in the last 18 months.

The borrowers, who are seeking about $5.5 million to purchase the property, felt People’s United would offer the most favorable and flexible terms, said Charles Hirsch, president of the more than 80-year-old real estate management, acquisition and development firm, given their rapport. Read More

Mortgage Observer

PRC Lands $52M Construction Loan for Student Housing Project

A rendering of the planned development at The College of New Jersey

New Jersey-based developer The PRC Group nabbed $52.5 million in construction financing for its $80 million student housing project at The College of New Jersey, Mortgage Observer has learned.

HFF secured the three-year loan for the 130-unit development, which should be complete by fall of 2015. The trio of lenders was led by M&T Bank, an M&T spokesperson confirmed, and funds from The Provident Bank and Columbia Bank were bundled into the deal, according to Greg Lentine, director of university campus development for PRC.  Read More

Mortgage Observer

M&T Bank Finances Manhattan’s First Micro-Unit Development

My Micro NY Rendering

It was a tight deal for an even tighter development. M&T Bank recently closed a $10.3 million construction loan for the creation of Manhattan’s first micro-unit rental property to be built in Kips Bay. The loan went to Brooklyn-based Monadnock Construction, which is leading the project’s development team, Mortgage Observer has first learned.

The nine-story “My Micro NY” project, located on the northeast corner of East 27th Street and Mt. Carmel Place, will consist of 55 prefabricated apartments averaging about 300 square feet with 40 percent of the units being offered at below market rates. The mini apartments will contain nearly 10-foot ceilings and seven-foot-wide balconies in addition to 16-foot-long overhead loft spaces and full closets. Read More

Mortgage Observer

Multifamily Financing in Manhattan Faces Rising Hurdles

(Illustration by Thomas Pitilli)

While Manhattan is clearly one of the most desirable places on the planet to live—and much ink has been spilled over rising rental prices therein—there is another side to the coin. The sky-high land values that come along with rising rents are now keeping a firm lid on multifamily development in Gotham.

Despite the enormous demand from renters, lenders are far more interested in financing luxury condominiums, hotels and office and retail development in Manhattan, sources told Mortgage Observer. And while developers and bankers cite myriad economic and practical reasons for the hampered development pipeline for multifamily projects, the ever-loftier land costs are the bedrock issue. Read More