Meridian Capital Group arranged $180 million in financing for the Club Row Building in Midtown on behalf of APF Properties.
The CMBS loan, provided by a global investment bank, features interest-only payments for its entire 10-year term and a fixed-rate in the mid-4% range. The transaction was negotiated by Meridian managing director Tal Bar-Or
Last month, APF Properties took 100 percent ownership of the building at 28 West 44th Street, buying out the 80 percent equity stake held by Prudential Real Estate Investors (PREI) and valuing the property at $235 million.
At the time, Kenneth Aschendorf, principal of APF Properties, called the move “part two” of the firm’s strategy to capitalize on a $9 million capital improvement program as the market for Class ‘B’ office buildings in Midtown flourishes.
“We are poised to take advantage of a strengthening leasing market with a new starting point by offering tenants this ‘best in class’ Class B+ LEED Gold Certified building we created, which currently offers a diversified tenant base,” Aschendorf added.
“Add to that the combination of our expertise as an owner of four buildings in this micro-market and the dynamics of the broader Manhattan market, and we believe we have a recipe for continued NOI growth.”
The 22-story block-through Club Row Building totals 372,000 s/f and has 14,600 s/f of retail on West 44th and West 43rd Streets. This section of West 44th Street, also known as Club Row, is one of the most prestigious streets in the heart of Midtown Manhattan.
The property has a new lobby and entrances designed by architect MdeAS. Significant tenants in the building include City College of New York (CUNY) and Emerge212 Boutique Space.