Meridian Capital Group arranged $30 million in financing for the refinance of an office property located in the Garment District of Manhattan, on behalf of Renaissance Properties.
The 10-year loan, provided by a national balance sheet lender, features a competitive fixed rate of 3.50%. This transaction was negotiated by Meridian Executive Vice President, Avi Weinstock, Managing Director, Josh Rhine and Vice President, Luke Hingson, who are all based in the company’s New York City headquarters.
The property, located at 264-268 West 40th Street, is a 20-story, approximately 120,000 square foot office building, occupied by 40 tenants, including two restaurants as the retail tenants.
The sponsor purchased the property as an underutilized asset in 2003 and invested over $10 million in renovations, which allowed for the reposition of the tenancy to create a class-A property.
Tenants enjoy close proximity to a variety of shops, restaurants and tourist attractions, including Times Square, the New York Public Library and Bryant Park. The building offers direct access to the A, C, E subway lines at the Port Authority Bus Terminal and the N, Q, R S, 1, 2, 3, and 7 subway lines at Times Square.
“Even though the mortgage was maturing a year from now, Meridian encouraged the sponsor to take advantage of the current market, particularly in this desirable area of Manhattan, to lock in excellent terms with a substantial cash-out, while maintaining approximately 35% loan-to-value,” explained Weinstock.
“Given the sponsor’s track record, Meridian was able to generate very strong proposals from multiple lenders and ultimately secured the best possible terms through a long-term balance sheet lender,” added Rhine.
“Josh Rhine did a fabulous job. He followed up on a timely basis and we succeeded with a great refinance,” said Kenneth Fishel at Renaissance Properties.
Photo top: 264-268 W40th via Agorafy