Precise Timing Earns $285M Refi

NEW YORK CITY-Locally based Meridian Capital Group has arranged $285 million to refinance the retail condominium at 717 Fifth Ave. here at 56th Street and Fifth Avenue. The class A-plus property includes four floors of retail/office condo space totaling 115,630 sf. Deal discussions began in early 2008, and went to process in June, said brokers on the deal.

David Rosenberg and Seth Grossman of Meridian’s New York City office negotiated on behalf of the borrowers, Jeff Sutton of locally based Wharton Properties and Manhattan based SL Green Realty Corp., to secure an interest-only, floating-rate loan. The JV partnership was created to identify and invest in under-performing retail assets. The first venture was to acquire the fee interests in two adjoining retail buildings at 1551 and 1555 Broadway, and in a third retail and commercial building at 21 W. 34th St. The second joint venture included acquisition of a mixed-use property at 141 Fifth Ave. The transactions totaled approximately $162.5 million.

After purchasing the property several years ago, Sutton bought-out Hugo Boss from its ground-floor retail lease and then signed luxury retailer Armani to a 15-year, multi-floor lease, for more than 40,000 sf. The four-level retail condominium at 717 Fifth Ave. boasts a three-story glass atrium. Laura Pomerantz of PBS Real Estate represented Armani in that transaction. The space is currently being built-out by Armani and the anticipated opening will be early 2009, which Grossman says is still on track.