Lower Manhattan Office Property Lands $900M Refi

One Soho Square. Image courtesy of Stellar Management

Stellar Management has received $900 million in refinancing for its One Soho Square office property in Manhattan, according to sources familiar with the deal.

Goldman Sachs provided the seven-year, fixed-rate loan, along with Deutsche Bank and Bank of Montreal. Cushman & Wakefield arranged the debt for the owner, which picked up the Class A asset back in 2012. The mortgage pays down a $900 million loan from three years ago, also funded by Goldman Sachs.

Built in two phases at the beginning of the last century, the 768,000-square-foot property at 233 Spring St. sits at the edge of the SoHo and Hudson Square neighborhoods. One Soho Square comprises the 15-story One Soho Square East and 13-story One Soho Square West.

Stellar purchased the two buildings for $200 million and renovated them in 2017, according to CommercialEdge data. Flatiron Health anchors the asset under a 10-year agreement signed in June 2019. The health-care company’s headquarters spans 252,452 square feet and nine full floors. Other tenants include JUUL, Aetna and Aveda Institute.

As of June, 34 office projects totaling 24.1 million square feet were under construction in Manhattan. As ongoing projects deliver, the borough’s pipeline has begun to shrink, with few new developments breaking ground amid both land constraints and the sector’s uncertain future. Hudson Yards remains the epicenter of ongoing construction, with 50 Hudson Yards topping the list of largest projects underway.