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Deals & Dealmakers

Brodsky scores $250M loan to refinance 400 West 59th and 925 Ninth Avenue

The Brodsky Organization secured a $250 million loan from Wells Fargo Bank NA to refinance 400 West 59th Street and 925 Ninth Avenue.

Photo courtesy of Flickr
Photo courtesy of Flickr

The 49-story 400 West 59th Street, also known as One Columbus Place Tower, offers a total of 729 apartment units, along with office and retail space.

Landmarked 925 Ninth Avenue  was once known as Syms Operating Theatre, a former St. Luke’s-Roosevelt Hospital Center facility where physicians could observe and learn from surgical procedures taking place there.

The space is now occupied by The Speyer Legacy School, which leases a total of 85,000 s/f of office space at the two properties.

Both towers were designed by Rosenwasser / Grossman Consulting Engineers, P.C, with construction completed in 1997.

The nonresidential portions of both buildings are operated as one property and were financed together with the residential portions, according to Rosenberg & Estis, P.C. which served as legal counsel to The Brodsky Organization LLC in a loan transaction.

Richard Sussman, Patricia Cleary, and Madeleine Karel, Rosenberg & Estis represented Brodsk. Deborah Franzblau of Blank Rome LLP represented Wells Fargo.

The 12-year loan puts the value of the towers at nearly $550 million, according to Comemrcial Real Estate Direct.

The equity and investment sales website reported that the property is expected to generate $19.1 million of net operating income this year, giving the loan a debt yield of 7.6 percent.

Fannie Mae has financed the property since its development in 1997. It then had provided credit enhancement to some $190 million of taxable and tax-exempt bonds that were used to fund construction. And in 2002, it funded a $169 million loan that was originated by American Property Financing Inc. APF was acquired by Wachovia Corp. in 2006. And Wachovia was acquired by Wells Fargo in 2008.

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