Northwood signs $227.1M acquisition loan with Ares for two office buildings in Soho

Northwood Investors through the entity NW 520 Soho LLC as borrower signed an acquisition loan with lender Ares Management through the entity Areeif Lender MS LLC valued at $227.1 million for two office buildings including the office building (O6) at 524 Broadway in Soho, Manhattan and office building (O6) at 520 Broadway in Soho, Manhattan.
The deal closed on June 10, 2021 and was recorded on June 16, 2021.
The two properties have 191,872 square feet of built space and 0 square feet of additional air rights for a total buildable of 86,860 square feet according to PincusCo analysis of city data. The loan price per built square foot is $1,183 per the PincusCo analysis.
The signatory for Northwood Investors was Aaron Weitzen.
Over the past five years, there have been 21 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 21 renovation/alteration projects (A2) applied for with a total estimated value of $1.3 million.
There was no prior debt on the buildings, which had been owned by the Propp families since the 1920s and 1930s.
Within a 400-foot radius of 520 Broadway, PincusCo identified six commercial real estate items of interests occurred over the past 24 months.
Of those six items, three were sales above $5 million totaling $416.8 million. The most recent of the three was Paceline Equity Partners which bought a retail co-op (D4) on 106 Spring Street for $23.9 million from SL Green Realty on May 3, 2021.
Of those six items, three were loans above $5 million totaling $245.7 million. The most recent of the three was Squire Investments which borrowed $27 million from City National Bank secured by the 11,520-square-foot, six-unit rental (D2) on 43 Crosby Street on October 1, 2020.

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