Manhattan’s 10 largest home loans in August totaled $1.5 billion, with lenders paying particular attention to large multi-family projects as well as hotel and office redevelopments.
Chetrit Group and A&E Real Estate each landed two of the largest loans. The Dermot Company, Toll Brothers, and the Sapir Organization had one each.
The Central Borough’s biggest borrowers withdrew $2.3 billion from lenders last month, up from $3.2 billion in August last year. Here are the biggest home loans of the past month:
Neat Chetrit | $365 million
The Chetrit Group and Stellar Management have refinanced the 850-unit Park West Village complex, a luxury building on the Upper West Side, with $365 million from the Bank of Montreal. A portion of the loan is securitized in the CMBS market, where the interest-only loan has an interest rate of 4.65% for a five-year term. Previous CMBS debt on the building had an interest rate of 2.62%. Chetrit and Stellar will use the loan proceeds to renovate 325 units.
Major renovations to the building, which include combining 55 units into 27, are expected to cost $48,000 per unit and raise rent to $81 per square foot from $46. Moody’s says the small renovations are expected to cost $19,300 per unit and raise rent from $65 to $81 per square foot. A total of 418 units are rent-stabilized.
The Square Mile Millions | $286 million
Douglas Eisenberg’s A&E Real Estate has secured $286 million from Square Mile Capital Management to buy 160 Riverside Boulevard — a 33-story, 455-unit building on the Upper West Side — for $415 million. A&E, one of New York’s largest apartment landlords, has spent more than $1 billion expanding its rental portfolio in the city this year alone.
Berkshire’s bet | $138 million
A&E Real Estate has refinanced 575 Amsterdam Avenue, a 266-unit residential tower on the Upper West Side, with $138 million from Berkshire Residential Investments. The previous lender was KKR Real Estate Finance Trust. A&E bought the property in 2018 for $220 million. Built in 1975, it is also known as 561 Amsterdam Avenue. A studio in the building costs $3,210 per month after a half-month concession.
Wise decision | $121 million
Sage Realty and Principal Real Estate Investors have secured $121 million from Acore Capital Mortgage to refinance 77 Water Street, a 52-year-old office tower in Lower Manhattan. The loan includes $72 million in new debt as Acore replaces AXA Equitable Life Insurance Company as lead lender. The total loan amount for the 26-story building, which is 70% occupied, is $128 million, Commercial Observer reported.
William Kaufman Organization, the parent company of Sage Realty, built the 614,000 square foot building in 1970. Improvements to the building would include a renovation of the lobby and a redesign of its outdoor pedestrian plaza.
Hotel slum | $120 million
The Chetrit Group has secured a $120 million senior loan from Mack Real Estate Credit Strategies to renovate the closed, low-budget Carter Hotel at 250 West 43rd Street. Total funding for the redevelopment is $185 million, replacing a 2018 loan from JPMorgan of $152 million. The Times Square establishment was called “undeniably, unequivocally, New York’s worst hotel” by The Observer in 2014, the year Chetrit bought it for $192 million. It closed the same year.
Superior Interiors | $120 million
Dermot has refinanced senior debt at Landon, a 375-unit residential tower in Hell’s Kitchen, with $120 million from German lender Helaba. The funds replace Dermot’s acquisition loan, issued by HSBC when it purchased the property in 2018 for $193 million. A one-bedroom, one-bathroom apartment at 520 West 43rd Street costs $4,300.
It sounds for you | $98 million
Toll Brothers has secured $98 million in construction funds from Bank OZK for the Rockwell, an ongoing 81-unit condominium project at 2688 Broadway on the Upper West Side. Hedge fund Sculptor recently acquired a minority stake in the project, Crain reported. Toll Brothers bought the site, where Hank Fried’s Hotel Marrakech operated with dubious legality, in 2019 for $44 million.
So Hotel | $89 million
Alex Sapir’s Sapir Corp has raised $89 million from corporate bond investors in Israel to refinance senior debt at the NoMo SoHo Hotel, 9 Crosby Street. The new funding will mature in 2026 with an interest rate of 6.75%, according to the exchange, and will replace debt issued by Goldman Sachs. Alex Sapir and his partner Gerard Guez bought the 26-story hotel from Deutsche Bank in a 2015 foreclosure sale for $205 million. Sapir then bought out Guez.
Middle Eastern Moolah | $80 million
Bahrain’s Premier Group, which is controlled by that country’s monarch, has secured $80 million from the United Arab Emirates-based First Abu Dhabi Bank to refinance a 242-key hotel at 170 Broadway in the financial district. The funds replace the debt held by Aareal Capital. The hotel is operated by Marriott.
Flatiron refi | $77 million
The Olnick Organization secured $77 million from the New York Community Bank to refinance 130 Fifth Avenue, a 140,000 square foot office building in Flatiron. The loan includes $25 million in new debt and replaces M&T Bank as lead lender. Amer Rada of Olnick filed interior renovation plans in May with the Department of Buildings.