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NEW YORK CITY-KBS Real Estate Investment Trust Inc., a Newport Beach-CA-based, publicly offered, non-traded REIT, has provided a $23.5-million senior loan for Tribeca Summit, an eight-story loft building being converted into a condominium community at 415 Greenwich St. in New York City.
This new loan will place KBS REIT's participation in the first mortgage, originated by AIG, at 25%. The loan is part of the recapitalization of Tribeca Summit in which KBS REIT has been providing additional financing through two junior mezzanine loans.
KBS REIT's first junior mezzanine loan of $15.9 million enabled the start of the conversion of Tribeca Summit into an exclusive condominium community. The second junior mezzanine loan of $31.2 million provided additional capital for the completion of the project. "The first mezzanine was closed in February 2006 and was a part of the $140-million loan commitment by AIG which we took $15.9 million of in the junior position," Keith Hall, EVP of KBS REIT, explains to GlobeSt.com. "The second mezzanine was made in May and was to cover cost cover overruns and carry it through completion."
Hall adds that besides the desirable location, the 25% interest rate and low loan to value was the reason this was an attractive investment opportunity.
Tribeca Summit is situated along an entire block on Greenwich Street, the main street of Tribeca between Laight and Hubert streets. The property is located in close proximity to premier restaurants, shopping, night spots and parks.
KBS Capital Markets Group is the dealer manager for KBS REIT. KBS Capital Advisors is the advisor for KBS REIT. Both companies are affiliates of KBS Realty Advisors, a real estate investment firm.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
