Midtown South Office Building Gets $20M Loan
- Jan 03, 2020
Windsor Management Corp. has refinanced 16 W. 36th St., a 13-story, 67,271-square-foot office building with street-level retail in Manhattan’s Midtown South submarket, for $20 million. JLL Capital Marketsarranged the 10-year, fixed-rate loan through an unidentified life insurance company.
A previous $13 million permanent loan was originated in September 2013 by New York Community Bank, which was also the lender, according to Yardi Matrix data. The loan was originated when Kiamie Industries Inc., part of Windsor Management Corp., acquired the leasehold interest in the property from The Praedium Group and its partner NorthEnd Equities, which had purchased the leasehold interest a year earlier for $8.2 million, according to The Praedium Group and Yardi Matrix data.
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Built in 1920, the building is located in the Garment District between Fifth and Sixth avenues. The property is 97 percent occupied by a mix of tenants attracted to the average floor plate of 5,057 square feet which allows smaller boutique tenants to have a full-floor presence for their firms. Office tenants include Knotel, Terrance Hariston Architects, Indiewalls, Susan & Co., JGM Construction Group, NECO, ProMed Personnel Services, Cosmopolitan Management and Global Beauty Care. The prime street-level retail space, about 4,000 square feet, is occupied by Clinton Hall, one of New York City’s most popular sports bars. The average asking rent is $53.65 per square foot, according to Yardi Matrix data.
Windsor Management, which is owned by the Kiamie family, recently invested in the property. Improvements included retrofitting suites for new tenants with high-end finishes, glass walls, new bathrooms, polished concrete floors, LED lights and luxury kitchen pantries with stone countertops. The building’s central location in Midtown South offers easy access to Madison Square Garden, Bryant Park, Times Square and Madison Square Park. It is within five blocks of major transportation hubs including the 7, B, D, F and M subway lines at Bryant Park; the 1, 2, 3 subway lines and Long Island Railroad at Penn Station; Port Authority bus station; and the 4, 5, 6, and 7 subway lines at Grand Central Terminal.
The JLL Capital Markets team handling the refinancing included Managing Director Steven Klein and Associate Alex Staikos.
Klein pointed to the central location of the building as well as the experience of the multi-generational owners, who own and manage nine commercial office buildings in Manhattan, Westchester County, N.Y., and Fairfield County, Conn. Other Manhattan properties are: 118, E. 28th St., 256 W. 36th St., 31 E. 32nd St., 115 W. 45th St., 37 W. 26th St., and 99 Madison Ave.
In late 2016, while he was a managing director at HFF—which was acquired by JLL this past July—Klein was part of the team that secured $58 million in separate financings for four buildings owned by Windsor Management: 37 W. 26th St., 256 W. 36th St., and the company’s two suburban holdings 411 Theodore Fremd Ave. in Rye, N.Y., and 6 Armstrong Drive in Shelton, Conn. Three of those financings were obtained through life insurance companies and one through a national bank.