The fund was part of a five-year, fixed-rate financing package made to the building owner, Lexington Operating Partners LLC, in Aug. 2007. The transaction to acquire two separate mezzanine loans is the ninth debt purchase made by the company in the last nine months, and brings its total debt holdings to $685 million.
Douglas Shorenstein, chairman and CEO of Shorenstein Properties, says in a prepared statement that "our ability to quickly and expertly assess, underwrite and close transactions despite ongoing dislocation in the real estate credit markets means that we continue to see solid opportunities to acquire debt and equity interests in key class A buildings generating attractive risk-adjusted yields throughout our target markets in the US." Shorenstein was unable to answer further comment by deadline.
The building at 450 Lexington is located at 45th Street and Lexington Avenue on the same block as New York's Grand Central Terminal. The property is currently 99.9% leased. Major tenants in the building include Davis Polk & Wardwell, Warburg Pincus and Citigroup.
Shorenstein recently provided another office mezzanine loan as GlobeSt.com previously reported, to finance a portion of the purchase of 650 Madison Ave. Shorenstein commented at the time at the firm "continues to see selective opportunities to underwrite and originate mezzanine financing secured by quality office and mixed-use buildings in major markets." That loan was also originated on behalf of its ninth investment fund.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
