218 West 40th Street, New York, NY
Placement of a $32 million fixed rate, 10 year first mortgage loan to finance the acquisition of a 157,000 square foot Class B office building.
Representing a partnership of Block Buildings and Kaufman Organization, Savills arranged a $32 million fixed rate, 10 year first mortgage loan to finance the acquisition of a 157,000 square foot Class B office building in a midblock location in the Manhattan Garment District, located across from the site of the new headquarters building of the New York Times.
Although the building was fully occupied, 60% of the building was leased on a long-term basis to a single tenant, which, throughout the assignment, was the subject of dual investigations by the SEC and the Department of Justice, and, at one point, a "60 Minutes" expose on national television. With full and open disclosure of the tenant issues, Savills nonetheless placed the loan, which represented "full" loan-to-value proceeds, with a major New York investment bank at a spread inside of 100 basis points over the comparable maturity Treasury.
