$34M of Financing in Place for NYC Office and Retail Portfolio
- Jul 06, 2012
Lenders love New York. With the assistance of Meridian Capital Group L.L.C., Pi Capital Partners has obtained a loan for the refinancing of an office and retail portfolio in Manhattan and Queens.
“Meridian originally financed the portfolio approximately two years ago and given how low Treasury yields are and how competitive banks have become for high-quality assets in New York City, our clients are actively revisiting their portfolios and the underlying financing,” a Meridian spokesperson told Commercial Property Executive.
Financing for the group of assets, which includes the corner buildings at 459 Lexington Ave. and 335 Fifth Ave., came in the form of a five-year loan featuring a 3.80 percent fixed rate and a 30-year amortization period. It was a local savings bank that came through with the funds.
“The portfolio’s prime Midtown and Downtown locations, coupled with leading retail and restaurant tenants made the deal attractive to the bank,” Cary Pollack, managing director with Meridian, noted in a prepared statement. “Pi Capital Partners made a great move by taking advantage of historically low interest rates and refinancing this portfolio now.”
The capital markets have not fully defrosted, but they have certainly warmed up to New York City real estate. Strong sponsorship and stabilized high-quality properties catch lenders’ attention across the country, but borrowers seeking financing for assets in New York City have an added advantage: favorable economic conditions. The state of the local economy bodes well for the long-term success of various property types. As noted in a recent report by commercial real estate services firm Cushman & Wakefield Inc., the New York City economy continues to outperform the nation as a whole and is one of only three cities in the nation where employment today is higher than it was before the recession.