Meridian Capital Group negotiated a $160 million syndicated loan for the office building located at 980 Madison Avenue in New York, NY on behalf of 980 Madison Owner, LLC, an entity controlled by RFR Realty.
The seven-year financing was provided by a syndicate of three banks, features a fixed-rate of 4.125% and includes a three-year extension option. New York Community Bank was the Agent and led the deal retaining a $90 million portion of the loan. Bank United and Customers Bank rounded out the syndicate and took $40 million and $30 million respectively.
The transaction was negotiated by Meridian Capital Group managing director, Max Herzog, and managing director and head of structured finance, Terry Baydala, who are both based in the company’s New York City headquarters.
980 Madison Avenue is a six-story, 131,000 s/f office property located at the intersection of Madison Avenue and East 76th Street, across the street from the Carlyle Hotel . The property is composed of 14,650 s/f of ground-floor retail space which houses several retail tenants including Rebecca Taylor and Douglas Elliman, 100,270 s/f office and gallery space above and 16,100 s/f of lower level space below. The property is anchored by Gagosian Gallery, a world-renowned art gallery with eleven locations globally.
“Due to the size and complexity of the transaction, it was imperative that Meridian co-ordinate efforts with New York Community Bank, Bank United and Customers Bank in structuring this deal so that all three lenders were ready to fund simultaneously in order to meet the borrowers time line,” said Baydala.
“980 Madison Avenue is an iconic Upper East Side class-A property. Meridian worked closely with New York Community Bank, as the lead, as well as Bank United and Customers Bank, as participants, to structure very strong financing terms that are well-suited for a prestigious building of this caliber,” said Mr. Herzog.