Meridian Capital Group negotiated $230 million in acquisition financing for the purchase of Steinway Hall at 109-113 West 57th Street on behalf of a partnership led by JDS Development Group.
The one-year, interest-only loan features a fixed-rate and two six-month extension options.
Managing directors Aaron Appel and Moshe Majeski originated and executed the financing. As part of this transaction, JDS Development Group, along with partner Property Markets Group, also recapitalized and consolidated their existing development parcel at 105-107 West 57th Street.
“The acquisition financing provided the sponsorship with the necessary capital to create a truly extraordinary development assemblage,ˮ said Appel.
“Meridian was able to vividly illustrate the sponsor’s vision for the property to the lender in a compelling way that allowed the loan to close in a one-week timeframe.” JDS Development Group plans to restore Steinway Hall to its original grandeur and construct a 900 ft. tall tower next door.
“Given the creativity and ability of the sponsor, the new property is destined to become an iconic New York City skyscraper, building on the unique pedigree of Steinway Hall,” added Appel.
Steinway Hall was built in 1924 and has been either fully or partially occupied by Steinway & Sons, the famed piano maker, since it construction.
The building, designed by architecture firm Warren & Wetmore, was designated and registered as a historic and cultural landmark in 2001.
In March, Meridian arranged $128 million financing on behalf of JDS for the company’s purchase of the 730,426 s/f development site located at 616 First Avenue.