Two Real Estate Firms Secure $95M Loan for Manhattan Office
The property spans more than 515,000 gross square feet.
A joint venture for an office building in downtown Manhattan of New York City has secured a $95 million senior mortgage loan.
The JV’s makeup is between major real estate firms BLDG and DWREI. The property, called 100 Wall Street, spans more than 515,000 gross square feet.
Northwind Group provided the loan for 100 Wall Street, which features 29 stories and comes with floor plans, containing air and light on all four sides. Northwind noted in a statement that those features “set 100 Wall Street apart from similar office products in the Financial District.”
“This iconic office building, situated in the heart of Manhattan’s financial district, represents a cornerstone of our commitment to strategic investment and innovative financing solutions in core urban markets,” Northwind’s founder and managing partner, Ran Eliasaf, stated.
“Despite the challenges faced in today’s office market, the attractive basis, existing in place cash flow, strong top-floor WALT and tenancy, and potential for residential conversion give us confidence in a path towards stabilization in the building. We have underwritten many offices NYC and elected to finance this project as it checks all the boxes with a clear and simple business plan.”
Justin Kleinman, executive vice president and chief operating officer of BLDG said that the office building will come with an “array [of] opportunities to enhance value and tenant experience.”
While there’s been some concern with vacancies in the office space with the work-from-home trend picking up steam, there is one positive element to take out of the New York City market recently. A report from Cushman & Wakefield revealed that investment sales in the metro area rose 3.2 percent in the second quarter to $5 billion, compared with the first three months of the year. Distressed office deals helped drive the increase.
Northwind has closed more than $650 million worth of loans in 2024. John Vavas of Polsinelli Law Firm represented Northwind on the 100 Wall Street deal.