NEW YORK CITY—Lexin Capital has secured an $85 million loan for its recent acquisition of 551 Madison Ave., a 17-story, Midtown office and retail building spanning 151,000 square feet. The sale price, according to an industry data source, was about $155 million.

Shawn Rosenthal, EVP, and Jason Gaccione, SVP, of CBRE capital markets' debt & structured finance team secured the funds, which included $73 million in a first mortgage and $12 million in mezzanine financing, on behalf of Lexin. The fixed rate, interest-only loans were funded by Principal Real Estate Investors.

Darcy Stacom, Bill Shanahan and Eric Negrin of CBRE capital markets' investment properties team arranged the sale of the property on behalf of the seller. That party was Cornerstone Real Estate Advisers, which put the building on the block last September, according to The Real Deal.

Approximately 94% occupied, 551 Madison Ave. sits on the northeast corner of Madison Avenue and 55th Street, in the Plaza district. The stabilized and diverse tenant base offers future cash flow upside with in-place rents averaging a healthy 15% discount to market.

Tenants at the building—which was has a retail focus—include Omni Hotels & Resorts, which owns the 398-room Omni Berkshire Hotel at Madison Avenue and 52nd Street, ­­and clothing firm Lacoste, which rents just over 25,000 square feet of space, the Real Deal reports.

Additional retail tenants include Robert Marc Opticians and Allen Edmonds, while various financial-services companies and law firms round out the occupier roster, according to industry data and published reports.
“Lexin's acquisition of this well located core asset aligns well with Principal's various balance sheet financing vehicles,” Gaccione comments. “Principal recognizes the potential unlocked value in this asset, and was attracted to the knowledge and operational expertise that Lexin brings to the table.”

NEW YORK CITY—Lexin Capital has secured an $85 million loan for its recent acquisition of 551 Madison Ave., a 17-story, Midtown office and retail building spanning 151,000 square feet. The sale price, according to an industry data source, was about $155 million.

Shawn Rosenthal, EVP, and Jason Gaccione, SVP, of CBRE capital markets' debt & structured finance team secured the funds, which included $73 million in a first mortgage and $12 million in mezzanine financing, on behalf of Lexin. The fixed rate, interest-only loans were funded by Principal Real Estate Investors.

Darcy Stacom, Bill Shanahan and Eric Negrin of CBRE capital markets' investment properties team arranged the sale of the property on behalf of the seller. That party was Cornerstone Real Estate Advisers, which put the building on the block last September, according to The Real Deal.

Approximately 94% occupied, 551 Madison Ave. sits on the northeast corner of Madison Avenue and 55th Street, in the Plaza district. The stabilized and diverse tenant base offers future cash flow upside with in-place rents averaging a healthy 15% discount to market.

Tenants at the building—which was has a retail focus—include Omni Hotels & Resorts, which owns the 398-room Omni Berkshire Hotel at Madison Avenue and 52nd Street, ­­and clothing firm Lacoste, which rents just over 25,000 square feet of space, the Real Deal reports.

Additional retail tenants include Robert Marc Opticians and Allen Edmonds, while various financial-services companies and law firms round out the occupier roster, according to industry data and published reports.
“Lexin's acquisition of this well located core asset aligns well with Principal's various balance sheet financing vehicles,” Gaccione comments. “Principal recognizes the potential unlocked value in this asset, and was attracted to the knowledge and operational expertise that Lexin brings to the table.”