JV Secures $73M for NYC Redevelopment

APF Properties and Drake Street Partners tapped CBRE to arrange acquisition and redevelopment financing for 163 Varick St. in Manhattan.
163 Varick St., Manhattan
163 Varick St., Manhattan

After arranging $43 million in acquisition financing in San Diego for Swift Real Estate Partners’ 530 B, CBRE’s Capital Markets Debt & Structured Finance team secured $73.4 million for 163 Varick St., located in the Hudson Square submarket of Manhattan.

Shawn Rosenthal, Jason Gaccione, Sunny Somaiya and Kyle Baldwin secured the loan on behalf of sponsorship, a joint venture between APF Properties and Drake Street Partners. The acquisition and construction financing was provided by SL Green and ACORE Capital.

Re-branding Strategy 

Set to be re-branded as 60 Charlton St., the asset will be redeveloped into a mixed-use Class A office building that will feature ground-level retail. The six-story, 60,000-square-foot building will be completely gutted and will add in five new steel and glass floors on top of the existing structure. The total square footage of the property will reach 100,000 square feet upon completion. Construction is set to begin in 2018. 

“Both SL Green and ACORE were attracted to the unique nature of the redevelopment – what will be a new boutique office asset in a dynamic submarket – as well as the strong qualifications of the highly capable sponsor group of APF Properties and Drake Street. Within a couple of years Hudson Square will see its first best-in-class, newly constructed, boutique office building,” said Rosenthal, in prepared remarks.

Image courtesy of PropertyShark