Two luxury rental buildings on the Upper East Side brought in about 40 percent of the cash on Manhattan’s 10 largest real estate loans last month.
Rental buildings also attracted big loans in the West Village, as renters paid a record average of $4,000 to live in the city’s central district in May.
The top 10 Manhattan home loans recorded in May totaled $1.5 billion, down from $1.7 billion in April and $1.8 billion a year ago.
Here are more details on the loan packages, ranked by largest:
1. Cha Ching | $714 million
Chetrit Group and Stellar Management have raised $714 million in CMBS debt to refinance and renovate two luxury rental buildings on the Upper East Side: Yorkshire Towers at 305 East 86th Street and Lexington Towers at 160 East 88th St. Bank of Montreal, Starwood Mortgage Capital and Citi Real Estate Funding provided $539.5 million in senior and subordinated loans. In addition, there are mezzanine debts of 174.5 million US dollars.
Chetrit and Stellar will use the loan to extract $55.3 million in equity, according to Morningstar DBRS. The CMBS debt has a tenor of 10 years, interest only, with an interest rate of 3.04 percent for non-mezzanine bonds and a weighted average rate of 7.26 percent for mezzanine bonds.
The funding replaces a $550 million loan provided by Natixis and UBS in 2017. Chetrit and Stellar bought the properties in 2014 for nearly $500 million.
2. Room Discounts | $239 million
Sonesta International Hotels secured $239 million from Ramsfield Hospitality Finance and funds managed by CarVal Investors to acquire the Benjamin, Shelburne Hotel & Suites, Gardens Suites Hotel and Fifty Hotel & Suites.
Sonesta bought the four hotels for $324 million from Denihan Hospitality Group, which retains a minority interest in the properties. Denihan refinanced the four hotels in 2016 with a $320 million loan from Goldman Sachs, suggesting a depreciation of about 25 percent assuming the same loan-to-value ratio.
3. Old School | 180 million dollars
Aby Rosen’s RFR Holding and Penske Media Corporation nailed $180 million from Citibank and JPMorgan Chase to buy 475 Fifth Avenue for $290 million, or about $1,315 per square foot.
Penske, which publishes Variety and Rolling Stone and is headquartered in the building, provided 50 percent of the equity for the purchase. Total financing for the acquisition was $260 million, with PCCP providing mezzanine debt, the Commercial Observer reported.
4. Uptown Dreaming | $79 million
Taconic Partners, Nuveen Real Estate and Flatiron Equities were awarded $78.8 million by Ares Commercial Real Estate for the redevelopment of 309 East 94th Street and 324 East 95th Street in Yorkville. The three companies purchased the Upper East Side properties, which have 205,000 square feet of development potential, for $70 million in late 2021. Plans to dig test pits at the site were submitted to the Department of Works in May.
5. Shopping in the village | $64 million
John Usdans Midwood Investment and Development raised $63.5 million from Metlife Real Estate Lending to purchase Candela Tower, a 158-unit apartment building at 56 Seventh Avenue in the West Village for $102 million. Blackrock was the seller.
6. Fruity Funding | 60 million dollars
Jeffrey Gural’s GFP Real Estate received $60 million from Apple Bank, including $4 million in new funds, to refinance 200 Varick Street, a 490,000-square-foot office building in Hudson Square. The loan replaces the debt held by Wells Fargo. The building is 91 percent leased, the Commercial Observer reported.
7. Shovel Ready | $41 million
Isaac Tshuva’s Elad Group landed $40.9 million from Valley National Bank to buy a development site at the corner of Third Avenue and East 74th Street in Lenox Hill, where plans are approved for a 33-story residential building with just 47 units became. A joint venture of Premier Equities, Continental Ventures and Thor Equities sold the lot at 1299 Third Avenue where the 140,000 square foot building is planned for $61 million.
8. Artistic Deal | 40 million dollars
JMC Holdings received $40.2 million from the Granite Point Mortgage Trust to refinance the Interior Arts Building at 306 East 61st Street in Lenox Hill. The funds will replace the debt held by Square Mile Capital. JMB bought the 58,000-square-foot building in 2018 for $47 million.
9. Parking Payout | 40 million dollars
Alf Naman’s eponymous company has borrowed $39.5 million from First Citizens Bank to buy a 40,000-square-foot parking garage at 738 Greenwich Street. West Village Houses, a 42-story housing cooperative championed by city conservationist Jane Jacobs, sold the garage for $64.2 million.
The co-op had turned down an offer from Madison Equities in 2017 to buy and demolish the 420 co-op units. Proceeds from the sale of the garage, made possible by an exemption from the city’s off-street parking rules, were used to pay off debt and fund capital repairs.
10. Back to the office? | 36 million dollars
Skyway Development by Steven Mashaal received $36 million from the Metropolitan Commercial Bank to refinance a 77,000 square foot office building at 30 West 21st Street in Flatiron. Skyway bought the building in 2013 for $38.5 million. WeWork is a tenant on the second floor.