Manhattan Office Lands $110M Refi
- Oct 03, 2019
CheerLand Investment Group has landed a $110 million refinancing for its recently renovated Midtown South office tower, 287 Park Ave. S. Newmark Knight Frank arranged the financing with a floating-rate loan provided by Bank of China.
In 2014, the Chinese development company bought 287 Park Ave. S. for $128 million, according to public records. CheerLand was originally planning to convert the property into high-end condos, but later decided to renovate the building into office space, according to the Commercial Observer. The upgraded office space now offers 118,034 square feet of rentable space, with two ground-floor retail options.
NKF’s Dustin Stolly said that CheerLand invested a significant amount of capital into redeveloping 287 Park into a Class A office and retail building by updating it with modern building systems and amenities, while also restoring its historic design. The nine-story property, formerly known as the United Charities Building, was declared a national landmark in 1991.
The new design includes two lobby entrances, offices with 14-foot ceilings, a penthouse with 22-foot ceilings, an 85-foot long skylight and a private roof terrace. NKF vice chairs & co-heads of Debt & Structured Finance Jordan Roeschlaub and Stolly led the transaction, along with Nick Scribani and Chris Kramer.
Signed to Spaces by Regus
“The newly renovated, 118,034 SF office property was an easy sell to the lender universe given its highly visible, world-class location on Park Avenue South,” Kramer told Commercial Property Executive. “Following the lease-up momentum of Spaces by Regus taking the entirety of the office space, the deal was ‘buttoned-up’ and the execution of the refinance was enhanced.”
Kramer pointed out that Spaces, a flexible workspace provider, signed a 15-year lease for all of the office space at 287 Park Ave S. Penned in September of last year, Spaces took 103,321 square feet in the building as part of an extensive expansion plan in New York City.