(Save the date: RealShare New York comes to the Grand Hyatt, New York, NY, October 9.)
NEW YORK CITY-AREA Property Partners has taken full control at the Apthorp from Africa Israel Group following a recapitalization of the landmark apartment building, a spokesman for AREA confirms to GlobeSt.com. Earlier this morning, the New York Times reported that AFI has relinquished control of the project, but will maintain an ownership stake in the property, according to documents filed with the New York State Attorney General Eric Schneiderman.
As a condition to the recapitalization, AREA Real Estate Finance Corp. (AREFIN), its debt fund, assumed control of Apthorp Associates LLC, the sponsor under the condominium plan. Apthrop Associates will continue as the sponsor going forward and will direct operations at the property. Broadwall Management of the Apthorp and Broadwall Consulting Services, affiliates of the Feil Organization, will continue in their roles as project manager and owner’s representative and Corcoran Sunshine Marketing Group will continue as marketing and sales agent.
According to a report in the Real Deal, the transaction involved retiring the existing first mortgage loan that was replaced by a $125 million first mortgage and a $60 million senior mezzanine loan provide by Macquarie Bank Limited. According to a statement from AREA, AREFIN, an existing lender to the asset, invested new capital in the transaction through a majority interest in the new senior mezzanine loan demonstrating its continued support of the Apthorp.
Lee S. Neibart, AREA’s global CEO, says the “recapitalization resolves all legacy capital issues and is structured to ensure that the current condominium plan with continue its successful completion,” according to a statement.
The development is the latest in the complicated history of the storied but complicated Upper West Side property. In 2007, a joint venture of Maurice Mann of Mann Realty Associates and AFI partnered on the acquisition of the 163-unit apartment building. The JV secured $528 million of financing toward the renovation of the historic structure, including $393 million from Anglo Irish Bank and $135 million from Apollo Real Estate Finance Corp. Converting the Apthorp from rental to condo was the idea after Mann and AFI bought the property.
AFI did not return a phone call to GlobeSt.com for this article.
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