787 Eleventh Ave., in Hell's Kitchen in Manhattan/ Image credit: The Georgetown Company
NEW YORK CITY—The Georgetown Company, a developer, owner and operator of real estate received $410 million in refinancing for 787 Eleventh Ave. provided by Société Générale. The real estate firm recently completed a redevelopment of the property that's between W. 54th and W. 55th streets on Manhattan's Far West Side in Hell's Kitchen.
Architect Rafael Viñoly led the redesign of the building, whose investors include Arnold Schwarzenegger, LeBron James and Jimmy Iovine.
The recently completed renovation includes a two-story penthouse on the top floors, floor-to-ceiling windows, exposed brick, large columns, 24-foot high ceilings and a 12,000-square-foot rooftop deck with a tennis court.
The SocGen loan replaces a $350 million construction loan from the Blackstone Group, Goldman Sachs and ICBC. An in-house team led by Wayne Potter and Tim Hallock represented SocGen, while Russ Schildkraut from Ackman-Ziff assisted Georgetown in the financing negotiations.
“This new financing is evidence of just how thrilled we are with this project and everything happening in the surrounding neighborhood,” says Adam Flatto, CEO of the Georgetown Company, commending both SocGen and Ackman-Ziff.
787 Eleventh Ave., seventh floor/ Image credit: The Georgetown Company
In a joint venture, Pershing Square Capital and Georgetown had acquired 787 Eleventh Ave. from the Ford Motor Company in July 2015 for $255.5 million, according to Real Capital Analytics. Built in 1929, the structure was originally an automobile warehouse, repair shop and showroom. Georgetown converted the eight-story building, creating modern offices on the upper floors.
Following a recently signed lease for nearly 100,000 square feet on the sixth and seventh floors by co-working company Spaces, 787 Eleventh Ave. is now approximately 90% leased. Spaces joins existing tenants Dwight Capital and Pershing Square Capital. Jaguar Land Rover and Nissan/Infiniti dealerships are on lower floors.
Mary Ann Tighe, Evan Haskell, Arkady Smolyansky, Ben Joseph and Ross Zimbalist of CBRE are leading the leasing efforts for the renovated property.
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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.
