JV Secures $175M to Buy and Renovate Midtown Office Tower
ZG Capital and Rialto Capital Management plan to implement a full-scale interior renovation and modernization at 45 E. 53rd St.
NEW YORK, NY – Joint-venture partners ZG Capital and Rialto Capital Management have secured a $175 million capitalization for the acquisition and renovation of a 20-story, premier office tower located at 45 E. 53rd St. in Midtown Manhattan.
ACRES Capital provided the loan to finance the acquisition and fund the comprehensive renovation plan, and Newmark arranged the future capitalization for the firms. Of the capital, $120 million will come from the loan and $55 million will come from equity.
Located in Midtown’s Plaza District, the boutique office tower, Park 53, spans 129,000 square feet and features a glass and steel façade. Situated on the corner of 53rd St. and Park Ave., the property was originally developed in 1991 as Santander Bank’s New York City headquarters.
Through a full-scale interior renovation and modernization of Park 53, the joint-venture partners plan to offer highly-amenitized, reimagined workspaces. The renovations will encompass a reimagined lobby, upgraded common areas and elevators, activated outdoor spaces on the 7th and 11th floors, and the addition of two amenity centers.
The Newmark team that arranged the capital was led by vice chairmen and debt & structured finance team co-heads Dustin Stolly and Jordan Roeschlaub, along with senior managing director Daniel Fromm. Newmark’s Eden Abraham and Michael Dorfman provided additional support in the transaction.
The two firms have retained Newmark’s Brian Waterman and Scott Klau to handle the leasing of the asset.