McGiffert Hall, 97-101 Claremont Ave., Morningside Heights
NEW YORK CITY—Union Theological Seminary in the City of New York has signed a deal for the sale leaseback of McGiffert Hall to the Riverside Church for $46.5 million. The property is located at 97-101 Claremont Ave. in Morningside Heights, in Manhattan's Upper West Side.
Union currently uses McGiffert Hall for student and faculty housing and has leased back the property concurrently with its sale to Riverside. A source with knowledge of the transaction tells GlobeSt.com that the lease is for five years.
The 82-unit apartment building is located in the northeast corner at the seminary's campus bound by Claremont Avenue and Riverside Drive extending from W. 120th to W. 122nd streets. The area includes the Neo-Gothic Riverside Church building, which opened in 1930. The institution is well known for its architecture including its majestic 400-foot tower and its history of social activism.
John D. Rockefeller, Jr., and his wife Abby deeded the land on which McGiffert Hall sits. The deed contained a right of first offer to Riverside to provide it with the opportunity to control the church block when Union no longer needed McGiffert Hall. Union is in the initial stages of constructing additional space on its campus, including new housing for students and faculty. It will vacate McGiffert Hall once that new space is completed.
Frank Liantonio of Cushman & Wakefield's brokerage division led the firm's overall advising of Riverside, with the assistance of Marc Nakleh who works in Cushman's valuation division. Mark Ehlinger of Cushman's equity, debt & structured finance division arranged the loan, which was provided by a regional commercial bank. Savills Studley's Ira Schuman and Richard Eaddy represented the seller, Union.
Liantonio describes the deal as beneficial for both institutions. “Riverside has control of the superblock as envisioned by the Rockefellers, and Union monetizes a surplus asset, while maintaining occupancy until their new facility is completed,” he says.
“We received strong interest from a wide range of local, regional, and money center banks to provide Riverside with the acquisition loan,” says Ehlinger. “The banks were attracted to both Riverside's sound financial operations and its overall mission, as well as to the strength of the Morningside Heights real estate market.”
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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.
