InterVest buys FiDi office building note with original principal of $124.6M: Sources

InterVest Capital Partners, the investment fund formerly known as Wafra Capital Partners, bought a $124.6 million 2019 loan from M&T Bank, secured by Tribeca Investment Group’s leasehold interest in the 477,000-square-foot office buildings at 30 Broad Street, in the Financial District, Manhattan, according to sources. The purchase price of the loan could not be determined, but some sources said it was at a significant discount from the face value of the loan.

Tribeca Investment Group, led by Elliott Ingerman and Bill Brodsky, under the name Tribeca Associates, bought the leasehold in 2016 for $130 million, and took out a $96 million loan from M&T Bank at the time. The owners refinanced the loan in 2019, borrowing a total of $124.6 million.

Tribeca Investment Group declined to comment, and InterVest did not immediately respond to a request for comment.

The property faces several challenges that put pressure on the value of the loan, including that it faces a ground rent reset in 2035, and that office space values have declined sharply as workers continue to work from home in significant numbers.

The fee owner of the property is Solil Management, which owns and manages the assets of the estate of Sol Goldman. The lease expires in 2079 but will be reset in 2035 to pay 4.5 percent of the property’s market value. The annual rent was $2.7 million at 2016, when Tribeca bought the ground lease for $130 million, borrowing $96 million from M&T Bank at the time.

The sale was brokered by a Newmark team including Adam Spies and Avery Silverstein. A representative for the brokers declined to comment.

One source said the loan is divided into a 70 percent stake owned by M&T Bank and the remainder owned by CIT Bank, now a division of First Citizens, and the M&T Bank piece sold for about 10 cents on the dollar> However another source vigorously disputed that characterization, yet noted the loan did sell at a discount.

InterVest Capital Partners changed its name from Wafra Capital Partners in 2022. The company was originally the Structured Finance and Business Development Divisions of Wafra, Inc., but in 2012 became a separating operating entity from Wafra, according to a company release.

Wafra Inc., also headquartered in Manhattan, is owned by the Kuwait Public Institution for Social Security.

InterVest last year bought a defaulted loan on a building it owns at 300 Lafayette Street.

The surrounding

Within a 400-foot radius of 36 Broad Street, PincusCo identified four commercial real estate items of interests occurred over the past 24 months. One of those four items was a sale which Silverstein Properties and Metro Loft Management bought the 406,025-square-foot, 88-unit office building (O4) on 55 Broad Street for $172.5 million from Rudin Management on August 4, 2023. Of those four items, three were loans above $5 million totaling $891 million. The most recent of the three was Macklowe Properties in which borrowed $664.5 million from Deutsche Bank secured by two condo units in the 874,513-square-foot, two-unit mixed-use building (RM) on 1 Wall Street and 477 other properties on September 29, 2023.

Direct link to the property’s ACRIS page.