Meridian Helps RXR Buy Downtown NYC Office Property

Meridian Capital Group negotiated a big chunk of change in acquisition financing for the purchase of the leasehold interest in a Manhattan office property.
32 Old Slip 2

Meridian Capital Group negotiated $325 million in acquisition financing for the purchase of the leasehold interest in 32 Old Slip, a 36-story office property located in New York City, on behalf of RXR Realty L.L.C., which purchased the building from Beacon Capital Partners for $675 million.

“The property is well located along the east side of Downtown Manhattan across the street from the Pier 11 ferry terminal and has unobstructed views of the East River, Brooklyn Waterfront and New York Harbor,” Jonathan Stern, Meridian’s managing director, told Commercial Property Executive.

Tenants of the building enjoy unobstructed views of the East River, Downtown Brooklyn and New York harbor.

Originally constructed in 1987, the 1,161,400-square-foot building is located between Front Street and South Street on the Manhattan waterfront, directly across from the Pier 11 ferry terminal. The property is close by the 1, 2, 3, 4, 5, N, R, J and Z subway lines as well as the Staten Island Ferry. In addition, lower Manhattan continues to benefit from the significant development and redevelopment projects at the South Street Seaport, World Trade Center, Brookfield Place and Battery Maritime Hotel.

“Downtown Manhattan, historically home to financial-services, insurance and real estate companies, has begun to experience a shift in its tenant base to companies engaged in creative industries such as technology and media,” Stern added. “Downtown Manhattan’s superior transportation network provides direct access to all NYC boroughs and Northern New Jersey.”

The five-year loan was provided by GE Capital and features a competitive fixed-rate below 3 percent and interest-only payments for the full term.

Last year, Meridian closed 3,480 loans totaling more than $30 billion in transaction volume with 175 unique lenders, equating to $120 million per business day.