$220M Loan Fuels Deal for US Steel Tower

PITTSBURGH-A partnership based in New York City has secured a $220-million conduit loan via Meridian Capital to buy the landmark US Steel Tower here, GlobeSt.com has exclusively learned. The 10-year, fixed-rate permanent financing, which closed Friday, was secured by Meridian managing director Rael Gervis and CEO Ralph Herzka, both of Meridian’s New York City office, and was originated by UBS. Meridian declines to discuss terms but says they’re “favorable.”

Citing unnamed sources, the Wall Street Journal reported in February that a group led by Mark Karasick had reached a tentative agreement to buy the 2.3-million-square-foot tower from an ownership team including AREA Property Partners and Winthrop Realty Partners. The deal, reportedly arranged by Adam Spies at Eastdil Secured, was contingent upon the Karasick group obtaining financing, the WSJ said, and the group reportedly sought a loan to cover about 70% of the purchase price. Karasick and a spokeswoman for AREA did not respond to GlobeSt.com’s requests for comment late Friday afternoon and Sunday.