News

Source: Commercial Mortgage

May 17, 2018

CapOne Funds Wall Street Offices

Capital One has written a $100 million long-term mortgage on a newly renovated office building in Lower Manhattan.

The 10-year, fixed-rate loan is backed by the 300,000-square-foot property at 40 Exchange Place, near the New York Stock Exchange. Newmark lined up the debt for a joint venture between GFP Real Estate and Northwind Group, both of New York.

GFP, formerly known as Newmark Holdings, and Northwind acquired the building in 2015 from Brooklyn-based Weiss Realty for $115 million. The partnership then undertook a $20 million gut renovation of the 122-year-old structure. The makeover included a new lobby and common areas, as well as upgrades to the elevators, restrooms and ventilation systems. There was a restoration of the building's facade.

Most of the proceeds of the CapOne loan will go to retire an $81.5 million debt package that Natixis provided in 2015 to finance the purchase and renovations.

Construction is nearing completion, and the partnership has been signing new tenants. Among them: law firm Kaufman Dolowich, shared workspace provider Knotel, Multicultural Radio Broadcasting, Powell Communications and Wolf Kasteler Public Relations. The occupancy rate is expected to reach 90% by year end.

The 20-story building was developed as a residential property in 1896 and later converted to office space. It's at the corner of William Street and Exchange Place.