Macklowe Properties signs $664.5M refi with Deutsche Bank for unsold condo units in FiDi

Harry Macklowe’s Macklowe Properties through the entity MIP One Wall Street Acquisition LLC as borrower signed a refi loan with lender Deutsche Bank through the entity Deutsche Bank Luxembourg valued at $664.5 million for 479 unsold condominium units in the building with 575 residential units 1 Wall Street in Financial District, Manhattan.
The deal closed on September 27, 2023 and was recorded on September 29, 2023. The prior lender was Deutsche Bank which held debt that had an most recent maximum loan amount of $415 million. The 479 units have 1,058,982 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $627 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for Macklowe Properties was Bruce Kimmelman. The signatory for Deutsche Bank was Joshua Frank and David Addison. The new lender is Deutsche Bank Luxembourg. Bruce Kimmelman is executive vice president of capital markets for Macklowe. There remained 371,259,769 on the original secured debt of $750 million from 2018. The new debt is $293 million.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 1 Wall Street.

The property

The rental condo with 575 residential units in Financial District has 1,058,982 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 874,513 square feet. The city-designated market value for the property in 2022 is $194.5 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot. On the tax lot, the most recent condominium plan was filed by MIP ONE WALL STREET ACQUISITION LLC to create 566 residential units and 1 commercial units in a building at One Wall Street in Manhattan, called One Wall Street Condominium that has a $1.7 billion sellout, according to an July 26, 2017 submission to the New York State Attorney General.

The borrower

The PincusCo database currently indicates that Macklowe Properties owned at least four commercial properties with 15 residential units in New York City with 64,583 square feet and a city-determined market value of $25.6 million. (Market value is typically about 50% of actual value.) The portfolio has $281.7 million in debt, borrowed from Fortress Investment Group and Emerald Creek Capital. Within the portfolio, the bulk, or 51 percent of the 64,583 square feet of built space are office properties, with P8 properties next occupying 27 percent of the space. They are all located in Manhattan.

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