Current and former JLL brokers dominated large deal brokerage last month
By Adam Pincus
1) Bank of America and Wells Fargo expanded their investments in Long Island City with a $1 billion take-out loan provided to Tishman Speyer. The two banks had provided a $640 million construction loan for the 1,871-unit project, and in a rare move remained in the deal following lease-up. The lenders added $340 million in new debt with the issuance of the loan, which was arranged by JLL’s Michael Tepedino, Michael Gigliotti and Geoff Goldstein.
Jackson Park, which includes the address 28-40 Jackson Avenue is a three-building complex whose towers open in 2018 and 2019.
2) Nightingale Properties and Wafra Capital Partners obtained approximately $700 million in debt for their August 2019 acquisition of the Coca-Cola building at 711 Fifth Avenue, for $909.3 million. The debt from JPMorgan Chase Bank was composed of $625 million in a first mortgage and approximately $75 million in additional financing. Cushman & Wakefield’s Gideon Gil, Rob Rubano, Noble Carpenter, Brian Share and Joe Lieske arranged the financing.
Then, in an unusual move, Nightingale and Wafra turned around and about a month later sold the building for a reported $955 million to a group including Michael Shvo and Turkish investor Serdar Bilgili, according to The Real Deal.
3) Brookfield Asset Management and Jeff Sutton obtained refinancing totaling $807 million for the 92,000-square-foot retail portion of the Crown Building at 730 Fifth Avenue. Even as the total debt is higher than the previously recorded debt of $720 million, the amount of recorded debt fell. It declined from $720 million to $587 million, as the value of retail real estate has generally declined in New York City and the country. Insiders did not point to retail values, instead the move was related to “loan structuring.”
Aaron Appel and Keith Kurland of AKS Capital Partners along with JLL’s David Sitt and Mark Fisher arranged the financing package.
4) Ruby Schron’s Cammeby’s International Group obtained a $500 million first mortgage loan from Capital One bank, for a 3,287-unit housing complex in Fresh Meadows, Queens. Brokers from Meridian Capital Group arranged the loan, according to sources. Cammeby’s and Meridian did not respond to requests for comment. The loan was immediately assigned to Fannie Mae. The refinancing package increased the debt level by 54 percent from the $325 million provided in 2006. Independence Community Bank provided the 2006 loan, which was assigned to Fannie Mae. Independence was acquired in 2006 by Santander Bank.
The loan covers eight tax parcels, including the addresses 188-02 64th Avenue and 64 Circle, 194-05 67th Avenue.
5) Deerfield Management, a healthcare-focused investment firm, obtained $540 million in debt from Blackstone and LoanCore Capital, according to the Commercial Observer, for the acquisition, conversion and redevelopment of 345 Park Avenue South. The Blackstone portion of the debt was arranged by CBRE’s James Millon, Tom Traynor and P.J. Finley, the CO reported.
Within the total debt package, $405 million was recorded.
6) Developers Elad Group and the Peebles Organization obtained a $450 million condominium inventory loan for unsold units at their residential conversion project at 108 Leonard Street in Tribeca. The debt was provided by Mack Real Estate Credit Strategies and arranged by AKS Capital Partners’ Aaron Appel, Keith Kurland, Jonathan Schwartz and Adam Schwartz. The loan replaced a 2016 debt package totaling $411 million composed of first mortgage debt from Bank of America and mezzanine debt from Apollo Commercial Real Estate Finance.
7) TF Cornerstone was given a $250 million first mortgage at its 230 Park Avenue South, where the media firm Discovery signed a long-term lease for the entire building. Wells Fargo, Bank of America, JPMorgan Chase Bank provided the loan, which included $179 million in new debt. The financing was arranged directly between the lenders and TF Cornerstone.
8) Nathan Berman’s Metro Loft Management signed a $320 million debt package for the 553-unit rental building at 20 Broad Street in the Financial District. Apollo Global Management’s Athen Asset Management provided a $250 million first mortgage and an affiliate of the South Korean firm Shinhan Financial Group provided a $70 million mezzanine loan. Max Herzog of JLL arranged the financing.
The loans replace $270 million in financing provided in 2016 and composed of $187 million from Bank of the Ozarks, now Bank OZK, and $83 million mezzanine loan from a Brookfield Property fund. Herzog arranged that package, as well.
9) SL Green Realty and PGIM Real Estate took out a $198 million loan from Wells Fargo for five commercial condominium units at the Extell Development-built tower at 55 West 46th Street in Midtown. The partners borrowed $195 million in 2017 from M&T Bank and Natixis, and this new Wells Fargo loan replaces that and adds a $3.06 million gap mortgage.
10) Kushner Companies obtained a $150 million loan from AIG which replaced $85 million in financing obtained in 2011. The new debt includes a $68.7 million gap mortgage which was added to the remainder of the $85 million debt package the Royal Bank of Scotland lent the Kushners in 2011, which was later transferred to Deutsche Bank.
The new loan was a direct deal, a representative from Kushner Companies told PincusCo Media.