NEW YORK CITY—GFP Real Estate and Northwind Group closed on $100 million in refinancing for 40 Exchange Place, a 20-story, 300,000 square-foot office and retail building in Manhattan's Financial District.
GFP Real Estate (originally known as Newmark) and Northwind Group acquired 40 Exchange Place from Weiss Realty for $115 million in November 2015, according to Real Capital Analytics. They subsequently engaged in a comprehensive capital improvement program for the building which was originally constructed in 1902. The owners significantly improved all tenant spaces, the lobby, common areas, restrooms, new storefronts, the roof, the façade and the building systems including elevator cabs, fire alarms, sprinklers and tenant HVAC systems.
“We are excited to reach the final stages of the transformation and full renovation of 40 Exchange Place,” says GFP's co-CEO Brian Steinwurtzel. “Leasing activity has been strong and we felt the time was right to refinance from a construction loan to long-term financing.”
Northwind Group managing partner Ran Eliasaf adds that the refinance signaled the transformation of the property into one offering beautiful spaces at great value for a wide range of tenants.
Paul Talbot, senior managing director at Newmark Knight Frank, arranged the 10-year, fixed-rate refinancing loan through Capital One Bank.
“We received a very strong response from a number of lenders, including insurance companies, banks and conduits,” says Talbot. “Capital One understood our requirements and worked with us to lock our rate early while providing the flexibility to complete our renovation.”
The property is expected to reach over 90% occupancy within the next six months. Its current tenants include Knotel, Kaufman Dolowich & Voluck, LLP and Multicultural Radio Broadcasting. In addition, earlier this year, Powell Communications, Wolf Kasteler Public Relations and New Knowledge Organization also signed new leases.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
