Mark Karasick’s 601W Companies has secured a $705 million CMBS loan to close on its acquisition of 410 Tenth Avenue for $952.5 million. J.P. Morgan provided the seven-year, fixed-rate debt, Commercial Mortgage Alert first reported. The transaction closed late Friday afternoon.
- Project details: The 20-story office redevelopment spans 636,000 SF, and is expected to be completed in the third quarter of 2021.
- Worth Noting: In November, SL Green announced it had agreed to sell the property to 601W. As part of the deal, the buyer took over a $600 million construction loan from Goldman Sachs and Wells Fargo that SL Green had secured in September, CO noted.
- Excellent tenants: Amazon (335,000 SF) and First Republic Bank (212,000 SF) have already signed on as tenants. The building is being modernized with a new glass-box lobby, industrial-style windows, new elevators, a new roof deck and lounge, and the addition of double-height storefronts on the ground floor.
- Heard on the Street: SL Green’s Managing Director Brett Herschenfeld: “The sale of 410 Tenth Avenue is yet another indication of the Manhattan office market’s resiliency and continued global demand for high-quality, trophy assets with credit-rated tenants. While the asset was always intended to be held as a long-term investment, the sale will allow the company to achieve extraordinary profits, substantially reduce consolidated indebtedness, and generate additional liquidity for share repurchases.”
- Brokers: CBRE’s Darcy Stacom brokered the sale, while Meridian Capital Group negotiated the debt. [CO+CMA]