The Insider’s Weekly Guide to the Commercial Mortgage Industry In This Issue 1 Rockpoint Acquires UES Highrise for $218M With Wells Fargo Loan 1 Bank of America Finances Ten Almaden Buy in Deal Brokered by HFF 3 U.S. CMBS Delinquency Declines Further After Hitting Five-Year Low 3 NYCB Recapitalizes 216 East 45th Street 3 Deutsche Bank Finances Related High Line Acquisition 5 Greystone Further Expands Freddie Mac Loan Offering. 5 Hotel REIT Takes $150M Unsecured Term Loan Facility “Dodd-Frank greatly concerns me. We had historic changes to banking rules after 2008.” —Ed Lombardo From Q&A on page 7 Rockpoint Acquires UES Highrise for $218M With Bank of America Finances Ten Almaden Wells Fargo Loan Buy in Deal Brokered by HFF Rockpoint Group acquired The Wim- The 205,261-square-foot property, built a HFF secured $76.6 million in acquisi- bledon, a 28-story apartment high-rise on few blocks from Central Park in 1980, con- tion financing on behalf of KBS Capital the Upper East Side, for $218 million, or tains 223 apartment units and 6,200 square Advisors for its $116.7 million purchase $977,578 per unit, with a $115 million loan feet of ground-floor retail space occupied of a 309,255-square-foot office building in from Wells Fargo, city records show. by a Citibank branch. downtown San Jose, Calif. The Boston-based real estate investment J.P. Morgan’s asset management arm The three-year, floating-rate loan from firm purchased the luxury rental building bought The Wimbledon from New York- Bank of America was provided to KBS at 200 East 82nd Street from J.P. based investor P&H Associates for REIT III to acquire the property, Ten Morgan Investment Management $150.4 million in 2008. Almaden, from Sam Zell’s Equity Office in a deal brokered by Darcy Stacom The Rental prices at the property in a sale also arranged by HFF, according to and Paul Liebowitz of CBRE. range from $3,500 a month to a release from the broker. The acquisition The acquisition and financing LEAD $15,000 a month, according to data closed last month. closed on Dec. 30, 2014, according from StreetEasy. The 17-story office tower is 89 percent to the deed and loan documents. A representative for Rockpoint leased to a roster of tenants that includes Jason Krane and Patrick Hanlon of said the firm does not respond to media Citibank, Comcast, Robert Half Inter- Ackman-Ziff Real Estate Group brokered inquiries. national, Rosetta Marketing Group and the loan from Wells Fargo, a person familiar with the deal told Mortgage Observer. —Damian Ghigliotty See HFF... continued on page 3 1 | JANUARY 9, 2015 Relationship Driven. Execution Focused. 2014 Financing Transaction Highlights Putnam Portfolio Mobil Building Manhattan Park Broadway Multifamily Properties 2IðFH3URSHUW\ Multifamily Property 2IðFH3URSHUW\ 3,962 Units Leasehold Interest 1,107 Units 670,000 Sq. Ft. $737,000,000 $700,000,000 $261,300,000 $250,000,000 New York, NY New York, NY New York, NY New York, NY West 52nd Street Broadway West 5th Street West 57th Street Condominium Conversion 2IðFH5HWDLO3URSHUW\ Cooperative Property Cooperative Property &RQGRV6)2IðFH 190,000 Sq. Ft. 2,585 Units Fee Position $228,500,000 $200,000,000 $200,000,000 $180,000,000 New York, NY New York, NY Brooklyn, NY New York, NY Club Row Building 1412 Broadway Maiden Lane Vanderbilt Avenue 2IðFH3URSHUW\ 2IðFH3URSHUW\ 2IðFH3URSHUW\ 2IðFH3URSHUW\ 372,000 SF / 14,600 SF Retail 416,000 Sq. Ft. 562,000 Sq. Ft. 686,000 Sq. Ft. $180,000,000 $165,000,000 $145,000,000 $142,000,000 New York, NY New York, NY New York, NY Brooklyn, NY ZZZPHULGLDQFDSLWDOFRP MOW - Yearend Ad - 1-9-15.indd 1 2 | JANUARY 9, 2015 1/5/15 3:38 PM HFF...continued from page 1 Turner Construc- NYCB Recapitalizes tion Company. Ten Almaden, which 216 East 45th Street was built in 1988 and renovated in 2010, Meridian Capital Group scored a contains a three-story $51.5 million mortgage from New York atrium and lobby, a fit- Community Bank to recapitalize a ness center with an 17-story Midtown Man- outdoor pool and a six- MOW hattan office building on level parking structure. EXCLUSIVE behalf of New York-based The building sits on Ten Almaden Bernstein Real Estate, a 1.64-acre site at 10 Mortgage Observer Weekly has learned. Almaden Boulevard, The seven-year loan negotiated by within walking distance to the San Jose Meridian Managing Director Allan Diridon Transit Station. Lieberman carries a fixed-rate of 3.88 Senior Managing Directors Bruce percent, according to the broker. The Ganong and Kevin MacKenzie and Direc- deal closed in late December tor Jordan Angel led the HFF debt place- The 160,000-square-foot office prop- ment team representing the borrower. erty located at 216 East 45th Street, —Damian Ghigliotty between Second and Third Avenues, is fully occupied by tenants including the for-profit educational institution LIM College and AT&T. Bernstein acquired the property for 216 East 45th Street U.S. CMBS $60 million in June 2008 from a sponsor listed in city records as the Janco Real Delinquency Declines Estate Company and most recently in the year,” Mr. Lieberman said about Further After Hitting financed the building with a $44 million the recapitalization. “The lower inter- loan from NYCB in December 2011. est rate and new cash out will enable Five-Year Low “Meridian structured the loan to our client to recoup costs associ- minimize the initial debt service and ated with recent and ongoing capital Trepp’s CMBS Delinquency Rate contin- accommodate several signed leases improvement projects.” ued to slide in December 2014, dropping five whose rent payments commence later —Damian Ghigliotty basis points to 5.75 percent after reaching it its lowest level in five years in November, according to data from the real estate and financial research firm. The delinquency rate for U.S. commercial real estate loans that have been securitized Deutsche Bank Finances Related is now down 168 basis points from 7.43 per- cent in December 2013. High Line Acquisition CMBS loans that were liquidated with losses last month totaled almost $700 mil- The Related Companies has closed on lion and more than $700 million in loans the acquisition of two sites along the High were “cured,” helping to push delinquencies Line for the firm’s latest Hudson Yards down by 13 basis points and 14 basis points, development with a $125 million loan from respectively. Deutsche Bank, city records show. The delinquency rate for hotel loans saw Related acquired the properties at 511- the biggest year-over-year improvement, 525 West 18th Street, a low-rise garage dropping 314 basis points over the course of west of the High Line, and 131 10th Ave- 2014. The delinquency rate for retail loans nue, a parking lot that occupies the full saw the smallest improvement, dropping block between West 18th and 19th Streets, 40 basis points. The delinquency rates for for $205 million. industrial, office, and multifamily loans fell The New York-based mega developer by 291, 205 and 201 basis points, respec- purchased the sites from a partnership 131 10th Avenue tively, according to Trepp. led by investors Barry Haskell, based in “The CMBS market heads into the new Brooklyn, and Matthew Resnicoff, based year with a lot of momentum,” a market in Manhattan, according to the deed. The headquarters building. synopsis from the data firm read. “For most acquisition and financing closed on Dec. 23 Related is developing several large res- of 2014, issuance levels lagged behind most and hit city records this week. idential and commercial towers in Hud- experts’ opinions. A surge in the second half Crain’s New York Business first son Yards, the largest private construction of the year helped the market reach almost reported the news of the sale in May, cit- project in the country. $100 billion in deals, leading many lenders ing sources that say Related will erect a Representatives for Related and Deutsche to predict that issuance will crack that bar- 250-foot residential tower on the sites. Bank could not immediately be reached for rier in 2015.” The completed building will sit adja- comment. —Damian Ghigliotty cent to the Frank Gehry-designed IAC —Damian Ghigliotty 3 | JANUARY 9, 2015 ONE FIRM. DELIVERING CUTTING EDGE FINANCIAL STRUCTURING $186,000,000 $90,000,000 $32,300,000 Construction Loan Acquisition Finance JV Equity 372 Units 488 Keys 342 Units Multifamily Hotel Multifamily New York, NY Burbank, CA Larkspur, CA $22,862,500 $11,250,000 $11,100,000 Acquisition Finance Refinance Acquisition & Renovation 697,000 sf 158,000 sf 12,000 sf Retail Retail Townhouse Tampa, FL Westminster, CO New York, NY DEBT y EQUITY y MEZZANINE y INVESTMENT SALES ACKMANZIFF.COM 4 | JANUARY 9, 2015 Hotel REIT Takes $150M Unsecured Greystone Further Term Loan Facility Publicly traded REIT RLJ Lodging refi- Expands Freddie nanced outstanding CMBS debt to the tune of $150 million, the firm announced yesterday. The new unsecured term loan facility allows Mac Loan Offering RLJ to resolve any questions about refinanc- ing next year, when interest rates will likely be Multifamily and health care “We could not be more thrilled higher and a slew of loans will be due, poten- lender and developer Greystone to add the Freddie Mac Program tially stretching lenders’ limits—the antici- has earned Program Plus status Plus status to our stable of multi- pated so-called “wall of maturities.” from Freddie Mac family loan offerings,” Joe Mos- “With the completion of this transaction, MOW Multifamily, allow- ley, executive managing director we will address all of our 2015 debt maturi- EXCLUSIVE ing the firm to offer of Freddie Mac and Fannie Mae ties,” Thomas Baltimore Jr., president and loans of all sizes for lending at Greystone, said in a CEO of the firm, said in a statement.