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NEW YORK CITY-San Francisco-based Shorenstein Properties LLC has purchased a $39.5 million junior mezzanine loan on 1180 Avenue of the Americas from Hypo Real Estate Capital Corp. The 22-story 382,000-sf office building, sits at the corner of 46th Street and Avenue of the Americas in Midtown Manhattan and is owned by an institutional investor, which acquired the building earlier this year.
The building was constructed in 1962 and underwent significant renovation in 1984 and 1999. It is currently 90% leased. Mark McCarthy, a managing director with Shorenstein, tells GlobeSt.com that Shorenstein previously underwrote this building in the past and were attracted to the property due to its central location, tenants and flexible floorplans. Major tenants include New York Life and the E.W. Scripps Co., parent of Home & Garden TV, Food Network and DIY Network.
Douglas Shorenstein, chairman and CEO of Shorenstein Properties says in a prepared statement that the loan purchase was attractive to the company because it "affords an opportunity to participate in the future of an asset in midtown Manhattan, consistently one of the strongest office markets in the country, at a level below the replacement value of the asset and with a strongly capitalized borrower."
Shorenstein purchased the loan on behalf of its ninth investment fund, Shorenstein Realty Investors Nine LP, a $1.3 billion private commingled fund formed earlier this year. McCarthy tells GlobeSt.com that this is the fourth subordinated debt position acquired by the fund in the last three months, however it is the second in New York City.
In October, Shorenstein purchased a part of a construction loan for the development of Moffett Towers, a 900,000-sf office campus now being built in Sunnyvale, CA. Shorenstein also holds mezzanine loans on two office properties in Washington, DC as well as the office portion of 660 Madison Ave. here.
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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.
