(Read more on the debt and equity markets.)
NEW YORK CITY-The local office of Holliday Fenoglio Fowler LP has arranged a $163.5-million acquisition and predevelopment loan for a nearly 1.1-million-sf condominium interest in 375 Pearl St. in Downtown. The borrower, a JV between Taconic Investment Partners LLC and Square Mile Capital LLC closed on the acquisition only a few weeks ago as GlobeSt.com reported.
Evan Pariser, managing director of HFF, tells GlobeSt.com that the loan proceeds were not only used for the acquisition, but also used "for the completion of the predevelopment hard and soft costs, which the sponsors are working on." He also notes that being able to secure this financing in this "volatile and capital deprived market speaks highly to the reputation and expertise of the sponsors and the capital markets belief that their business plan is a sound and well conceived investment."
Pariser continues that "many of the more traditional sources of capital for this type of project have either tightened their underwriting criteria or have limited their lending activity. We were pleased to have delivered a few alternative proposals that were structured with senior and mezzanine debt that met the clients leverage requirements." Pariser, director Steven Klein and senior analyst Todd Newman worked exclusively on behalf of Taconic and Square Mile Capital to secure the adjustable-rate, first mortgage and mezzanine financing through Apollo Real Estate Advisors LP and M&T Bank.
As previously reported, the joint venture plans an extensive redevelopment of the building--also known as the Verizon Building--into a modern, multi-tenant office tower. The renovations will include a new facade, a new modernized lobby, a new HVAC system, new bathrooms and a reconfiguration of the core to include the addition of up to six new elevators.
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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.
