Meridian Capital Arranges $142M for Acquisition of Brooklyn Office Property
- Mar 11, 2014
Meridian Capital Group L.L.C., of New York, arranged a $142 million mortgage for the purchase of an office property in Brooklyn’s Fort Greene neighborhood on behalf of RXR Realty and American Landmark Properties, Meridian announced Monday.
The 10-story, 686,000-square-foot property, at 470 Vanderbilt Ave., is 88 percent leased. It’s directly across from the Atlantic Yards project and close to the Barclays Center.
The five-year loan features interest-only payments for the full term and was provided by a CMBS lender. It was arranged by Meridian Capital managing directors Rael Gervis and Reuven Hellman.
In late February, RXR paid $194.5 million, or about $300 per square foot, for the building. It was both the first building in Brooklyn to have been purchased by RXR and the company’s first New York City acquisition as part of its New York Metro Emerging Sub-Market initiative. This program “focuses on undervalued neighborhoods that are well-positioned geographically and demographically with strong infrastructure in New York City’s outer boroughs and suburban downtown districts located around transit hubs,” according to RXR.
Built in 1913, 470 Vanderbilt in 2012 completed a $74 million renovation that included new mechanical and electrical systems, state-of-the-art elevators, and modernized lobbies.
The building’s tenants include the City of New York, The League Education & Treatment Center, a not-for-profit organization serving children and adults with developmental disabilities; media and technology tenants Aereo and Switchnet, and a self-sustaining data hub for technology and telecommunications companies.
The building also has about 20,000 square feet of currently vacant retail space.
“The 470 Vanderbilt Avenue acquisition represents an opportunity for us to buy a building with healthy current returns generated by credit tenants, while also participating in the amazing transformation that is taking place across Brooklyn,” RXR chairman/CEO Scott Rechler said in a release.
“The building’s floor plates, ceiling heights and robust infrastructure are exactly what tenants in a wide range of industries are seeking in Brooklyn today,” added Seth Pinsky, executive vice president and fund manager, metro emerging markets.
The transformation Rechler referred to includes the development of nearly 7,000 units of housing and eight acres of new open space in several planned buildings, including 16 primarily residential towers planned for Atlantic Yards.