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GlobeSt.com EXCLUSIVE: $120M Financing Arranged for 75 Broad St.

NEW YORK CITY-Financing in the amount of $120 million has been arranged for the so-called "building within a building" at 75 Broad St. It is the second financing by CDP Capital for the property in the past year.

By Barbara Jarvie | Updated on January 14, 2004

NEW YORK CITY-Calling it a show of a commitment to the Downtown area, Canadian-based CDP Capital-Mortgages completes $120 million in financing for 75 Broad St. The funds allow the owner’s, JEMB Realty, to recapitalize the structure and retire Lehman Brother’s mezzanine loan.

“This financing really shows the turnaround of Downtown,” Raymond Chalmé, principal of JEMB, tells GlobeSt.com. “It made a huge statement.” Chalmé feels Lower Manhattan has “bottomed out” and that he sees a lot of activity in “properties that have taken an aggressive stance. It’s really working toward creating a 24-hour community here.”

CDP arranged the financing for a significant capital improvement initiative that includes a new cooling system, facade work and tenant improvements for one of the building’s newest tenants Millennium High School. In one of Lower Manhattan’s largest lease deals, the Board of Education inked a deal for 100,000 sf of space at the site in October. Because the building has two distinct entrances–one for the school and one for business tenants–it has been dubbed, “the building within a building.” The property is currently 85% leased with just under 100,000 sf available. JEMB purchased the property in 1999 for $75 million and Chalmé estimates the firm has put $40 million in improvement into the building.

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