NGKF Pulls Double Financing Duty in New York Area

The firm recently closed on two office financing deals, one of which was the largest of its kind in Greenwich in the last five years.
Greenwich Office Park, Greenwich, Conn.

Greenwich Office Park, Greenwich, Conn.

New York—It’s been a busy couple of weeks for NGKF Capital Markets in the New York metro area. The company recently closed on $97.5 million in debt financing for a Greenwich Park office acquisition, and secured $45.6 million in financing for the purchase of an office condominium building in Manhattan.

Working as exclusive advisor to Connecticut-based sponsor Fareri Associates, NGKF closed on $97.5 million in debt financing for the purchase of the 380,561-square-foot Greenwich Office Park in Greenwich, Conn. The transaction, which included a five-year, fixed-rate loan with a full-term, interest-only component, is the largest office deal in Greenwich in the past five years, according to NGKF. The eight-building business park was acquired from seller Clarion Partners on behalf of a separate account client managed by the firm, for a total price tag of $130 million—or $344 per square foot.

Executive Managing Director Jordan Roeschlaub led the NGKF team that arranged the financing, alongside Director Steven Sperandio and Managing Director Daniel Fromm.

Clarion Partners recently completed a $15.5 million capital improvement program at the property, which offers amenities such as a fitness center, full-service café, door-to-train shuttle service, complimentary covered parking, storage space and a tenant conference room, among others.

“The combination of premier suburban office space and market-leading sponsorship led to robust appetite from virtually every major lender,” Sperandio said in a statement. “Our team was able to structure a loan that insulated property-level cash flow from interest rate volatility and also offered flexibility for future redevelopment plans in and around the park.”

420 Fifth Ave., New York City

420 Fifth Ave., New York City

An NGKF Capital Markets team led by Roeschlaub and Daniel Fromm also secured $45.6 million in financing for the 14th to 17th floors of 420 Fifth Ave.—a Class A office condo building located in Midtown Manhattan. Working as exclusive advisor to A-M Properties and Quality Capital, the team arranged and structured a short-term, floating-rate loan that was used for the $48.2 million acquisition of the Class A office space, currently occupied by the seller, Girl Scouts of America. Pine River Capital Management issued the senior loan, which will be used to fund a future repositioning plan at the site, after Girl Scouts of America vacates the space in summer 2017.

“Combined with the strength of the sponsorship and the quality of the asset, our team ran an institutional process that ultimately allowed us to secure a favorable loan for the acquisition and repositioning of the property,” stated Roeschlaub.

Images courtesy of NGKF