NYC Office High-Rise Lands $250M Refi

By Barbra Murray

80 Maiden Lane

Normandy Real Estate Partners, Meadow Partners and AM Property Holding Corp.—co-owners of the 610,000-square-foot office property at 80-90 Maiden Lane—recently refinanced the asset to the tune of $250 million.

Global real estate investment manager Invesco Real Estate came through for Normandy et al with a five-year, floating-rate loan. NKF Capital Markets represented the ownership in the transaction, having presented Invesco with the opportunity to back a property highlighted by solid sponsorship and strong potential.

“80-90 Maiden Lane offers substantial upside through new mark-to-market leasing with average in-place office rents over 30 percent below market,” Dustin Stolly, a vice chairman with NKF Capital Markets, said in a prepared statement. Stolly was joined on the transaction by Vice Chairman Jordan Roeschlaub, Managing Directors Nick Scribani and Chris Kramer, and NKF Associate Director Dylan Kane.

The refinancing of 80-90 Maiden comes on the heels of the partners’ renovation of the two-building property. Delivered in 1912, the 25-story 80 Maiden sits adjacent to 90 Maiden, a four-story, H-shaped building that made its debut in the 1800s. Located in Downtown Manhattan’s Financial District, the property also features ground-level retail space, a portion of which is occupied by a Gristedes supermarket.

To refinance or not to refinance

Normandy and partners’ loan at 80-90 Maiden, which is scheduled to mature in October 2023, is just one of a slew of refinancing deals that continue to close in Manhattan’s office sector. Some of the larger transactions during the third quarter of 2018 include RXR Realty’s refinancing of the Starrett-Lehigh Building, a 2.3 million-square-foot property, with a $900 million loan, and H.J. Kalikow & Co.’s $365 million refinancing of the 1.2 million-square-foot tower at 101 Park Ave. And Normandy, along with partners Angelo Gordon & Co. and George Comfort & Sons, obtained a $415 loan to refinance the 739,000-square-foot asset at 575 Lexington Ave.

“Investors’ appetite for financing, which picked up substantially in 2015, has continued to grow as debt strategy has become a more important tool to balance risk exposure and capital protection—particularly as cap rates compress further,” NKF notes in its second quarter 2018 capital markets report.

Image courtesy of Yardi Matrix