Mission Capital Advisors has arranged $70 million in financing for 88 University Place, an 11-story building in the heart of Midtown South/Greenwich Village.
Mack Real Estate Credit Strategies provided the floating-rate loan on behalf of the sponsor — an investment group led by fashion designer Elie Tahari — which recently purchased the property in an off-market transaction for approximately $75 million.
Ownership plans to invest significantly in capital improvements, including new lobby entranceways, new elevator cabs and mechanical upgrades, common area improvements, and HVAC upgrades.
A 94,000 s/f corner building, 88 University Place consists of 11 stories of commercial loft space and ground-floor retail.
A forward lease is in place with WeWork, the real estate co-sharing office space juggernaut that has disrupted the office leasing market in the best of ways.
WeWork will occupy eight of the 10 floors, with the company expected to eventually occupy all 10 floors.
With 15 locations across New York City, and locations sprouting across the United States and six other countries, WeWork is revolutionizing the way people work, providing shared workspace to entrepreneurs, freelancers, startups and other small businesses.
Constructed in 1906, 88 University Place is an L-shaped building that has frontage on both 11th and 12th streets.
Key for the millennial demographic targeted by co-working spaces, the property is proximate to various entertainment venues and New York University, and is also well served by mass transit.
“88 University Place is a rare blend of coveted loft space with terrific building bones in an exceptional location within Manhattan’s Greenwich Village,”
said Jonathan More, managing director at Mission Capital.
“The Sponsor’s sophisticated real estate acumen was demonstrated in tying the asset up in an off-market transaction while concurrently forward-leasing the asset directly to WeWork. This unique combination of property, locale, and value-add afforded us the ability to secure very competitive capital and terms from a seasoned capital provider in Mack real estate.”
More, along with fellow Mission Capital Debt & Equity Finance Group members Ari Hirt and Jamie Matheny, secured the loan.