Newmark Knight Frank Secures Refi for Soho Retail Assets

Oaktree provided the floating-rate loan to a partnership led by 60 Guilders to upgrade two interconnecting spaces encompassing more than 4,000 square feet.
121 Spring St.
121 Spring St.

A partnership led by 60 Guilders has received a $54 loan to refinance 119-121 Spring St., consisting of 4,135 square feet of ground-floor retail space in the heart of the SoHo neighborhood of Manhattan.

The two properties are situated between Greene and Mercer streets and were built in 1915 and 1900, respectively. Combined, 119-121 Spring St. offers 150 feet of frontage area, and is in one of the most heavily traveled areas in Soho.

Newmark Knight Frank secured the floating-rate loan through Oaktree with Jordan Roeschlaub and Dustin Stolly, the firm’s vice chairmen & co-heads of debt and structured finance, leading the team. Also involved were NKF’s Senior Managing Director Daniel Fromm, Managing Director Nick Scribani, Managing Director Chris Kramer and Associate Director Dylan Kane. The Oaktree transaction team was led by Karsten Kibbe and Justin Manaloto.

60 Guilders acquired 121 Spring St., in 2017 for $28 million, after obtaining the leasehold rights on the retail condominium property three years earlier for $15.5 million.

Taking up shop

Bang & Olufsen recently signed a five-year lease for the entire 2,186 square feet at 121 Spring. “The 60 Guilders partnership represents a truly best-in-class sponsor profile with high-street retail expertise and proprietary knowledge of the SoHo submarket,” Stolly said in a prepared statement.

Meanwhile, the adjacent 119 Spring is currently available. CBRE is handling the leasing for the 1,949-square-foot space, formerly occupied by DASH. “With the newly-renovated glass facade in 119 Spring’s entrance and the submarket’s strong recent leasing momentum, we feel very confident in the leasing prospects,” Roeschlaub said.

Can Soho rebound?

REBNY’s Spring 2018 Manhattan Retail Report revealed that retail space in Soho is showing some regression after a few years of rental growth. With Lafayette Street and its adjacent side streets competing with the established Broadway corridor, rents have gone down over the past year. The report noted that Soho’s Broadway corridor, between Houston and Broome streets, saw the largest rent drops in the city year-over-year, with a 27 percent drop to $595 per square foot. 

Retail experts blame the falling rents on the lack of restaurants and museums in the area, but some believe that the foot traffic that Soho commands still makes it a worthwhile investment. Both the High Line park and the Whitney Museum of American Art aren’t too far and those have helped rents in the Meatpacking District trend up recently.

Earlier this month, NKF represented a joint venture led by SteelWave in the sale of Canyon Park Business Center, a 17-building, 633,000-square-foot property in the Seattle suburb of Bothell.

Image courtesy of Newmark Knight Frank