Oaktree Capital buys $230M loan where InterVest, Metro Loft plan FiDi conversion

Oaktree Capital Management through the entity Senior 111 Wall Grand Avenue Partners LLC bought a note with an original principal of $230 million from PIMCO secured by InterVest Capital Partners’ office building (O4) at 111 Wall Street in Financial District, Manhattan.
Oaktree already owned a $100 million mezzanine loan, and had scheduled a UCC auction for September 2023, according to reports at the time. The Commercial Observer and The Real Deal reported in September 2024 that InterVest had agreed to partner with Metro Loft Management to convert the office building into approximately 1300 residential units.
The loan sale closed on November 1, 2024 and was recorded on November 8, 2024. The prior lender was PIMCO which held debt that had an original loan amount of $230 million. The property has 990,250 square feet of built space according to a PincusCo analysis of city data.
The owner bought the property on June 10, 2021, for $220 million.

The property

The office building in Financial District has 990,250 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 216 feet and is 233 feet deep with a total lot size of 48,741 square feet. The lot is irregular. The zoning is C6-9 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $144.8 million. The most recent loan totaled $230 million and was provided by PIMCO on June 10, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received one DOB violation, $10,000 in ECB penalties, and $24,300 in OATH penalties in the last year.

Development

On the lot, there is one active major alteration construction project, M00528469, for a 847,775 square-foot building. The project was submitted by Roger Okewole with plans filed June 17, 2021 and permitted February 22, 2023.

The neighborhood

In Financial District, The majority, or 74 percent of the 79.9 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Financial District has the 3rd highest sale turnover among other neighborhoods in the city with $2.3 billion in sales volume in the last two years. For development, Financial District is the 3rd most active neighborhood among other neighborhoods. It had 13.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 17 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of two of the two commercial properties representing 1,963,837 square feet of the 1,963,837 square feet. The two identified owners are Rxr Realty and Wafra.
There are no active new building construction projects on this tax block.

All properties are office.

The borrower

The PincusCo database currently indicates that Intervest Capital Partners owned at least 16 commercial properties with 504 residential units in New York City with 795,088 square feet and a city-determined market value of $72.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 33 percent of the 795,088 square feet of built space are elevator properties, with walkup properties next occupying 30 percent of the space. The bulk, or 63 percent of the built space, is in Bronx, with Manhattan next at 37 percent of the space.

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