NEW YORK CITY-The United Federation of Teachers has secured $54.5 million in debt financing for the building the union owns at 50 Broadway. Cassidy Turley arranged the first mortgage financing for the 350,000 square foot building, which the UFT occupies and leases to other tenants.
Cassidy Turley senior managing director Neil A. Lipinski, chairman of the New York Tri-State Mark Boisi and Christian Miles, a managing director in the Capital Markets Group, worked the deal. "It was a refinance of existing debt and that loan was $24.5 million and it's a $20 million letter of credit and a $15 million line of credit," Lipinski tells GlobeSt.com. "That collectively gets you to the $54.5 million in terms of debt facility."
The UFT is a long-term client, Boisi adds, and was one of the first major tenants to move Downtown after 9/11. He sees the debt financing as a strengthening of Cassidy Turley's relationship with the group, which represents over 200,000 teachers, nurses and other professionals.
"Back in 2001 and 2002 we negotiated on the UFT's behalf the sale of their Midtown headquarters and relocated them Downtown to 50 Broadway, which we purchased on their behalf and also net leased the adjacent building 52 Broadway, which is 400,000 square feet," Boisi says. "So we did about a million square feet of transactions with them in 2002 and then subsequently they've asked us to manage those properties."
Lipinski says that he anticipates the union using the line of credit more for base building work "and ongoing cap x expenses."
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