Mission Capital Advisors has arranged $45 million of financing for 1825 Park Avenue, a 135,000 s/f commercial property located in Harlem.
Jonathan More, Ari Hirt, and Jamie Matheny of Mission Capital arranged the loan on behalf of Savanna, one of New York’s most active private equity firms, which purchased the property for $48 million.
“In keeping with the firm’s mantra of investing in New York’s growing neighborhoods, Savanna uncovered and came into control of this pre-war gem at the crossroads of Park Avenue and 125th Street, Harlem’s main commercial thoroughfare,” said Jonathan More.
“Given Savanna’s attractive basis, superb property location and reputation as a best-in-class office operator, the Mission Capital team was swiftly able to make a market of interested capital sources looking to finance this transaction.
“It took just three weeks from the time we approached the ultimate lender, TPG, until we had a fully negotiated, executed term sheet. TPG was focused, professional and fair in their negotiations and process.”
A 12-story building, 1825 Park Avenue is approximately 55-percent occupied by a mix of retail and office tenants. The retail includes JP Morgan Chase and Popeye’s.
Capitalizing on the limited supply of high-quality office space in Harlem, Savanna plans to implement significant upgrades to the building, repositioning it as a best-in-market office property.
“With Harlem making its way towards becoming a major commercial hub, we were able to procure a lender that saw the strength of Savanna’s business plan and was eager to invest in it,” said Hirt.
“There is currently an underserved market for high-quality office product in Upper Manhattan. Savanna will capitalize on this market need and increase cash flow through building improvements and aggressive lease-up.”
Cooper Kramer, a Managing Director at Savanna, added “The Mission Capital team was proactive, responsive and professional throughout the 1825 Park Avenue assignment. Savanna is thrilled to reposition 1825 Park Avenue and we believe TPG will be a terrific lender for the project.”
Mission Capital Advisors recenlty arranged $81.5 million in acquisition and repositioning financing for 40 Exchange Place in the Financial District and secured $34.3 million in renovation financing for the Equitable Building in Baltimore, Maryland.