Goldman Sachs – 601W Corporations Closes on Acquisition of 410 Tenth Avenue, Lands $705M CMBS loan – Business Observer
The 601W Corporations has formally closed on its acquisition of 410 Tenth Avenue, together with the $705 million business mortgage-backed securities (CMBS) loan it secured for the acquisition, sources near the deal advised Business Observer.
The transaction closed late Friday afternoon.
J.P. Morgan supplied the seven-year, fixed-rate debt. Business Mortgage Alert first reported particulars of the financing.
The 20-story, Class A workplace redevelopment mission contains 636,000 sq. toes. Its main tenants embody Amazon, which anchors the property and leases 335,000 sq. toes, and First Republic Bank, which occupies 212,000 sq. toes.
In November, SL Inexperienced Realty Corp. introduced it had agreed to promote the property to 601W Corporations for $953 million, with the disposition being heralded as the largest workplace sale within the nation because the onset of the coronavirus pandemic.
As a part of the deal, 601W is taking up the $600 million building loan SL Inexperienced closed in September for the property with lenders Goldman Sachs and Wells Fargo, The Actual Deal reported.
The REIT purchased the constructing in 2018 from the Kaufman Group for $440 million.
“The sale of 410 Tenth Avenue is yet another indication of the Manhattan office market’s resiliency and continued global demand for high-quality, trophy assets with credit-rated tenants,” Brett Herschenfeld, managing director of SL Inexperienced, stated in an announcement on the time the sale was first introduced. “While the asset was always intended to be held as a long-term investment, the sale will allow the company to achieve extraordinary profits, substantially reduce consolidated indebtedness, and generate additional liquidity for share repurchases.”
CBRE’s Darcy Stacom brokered the sale, whereas Meridian Capital Group negotiated the loan, sources stated.
The debt deal marks the second behemoth CMBS financing to shut in per week. On Dec. 11, KKR sealed a $740 million acquisition loan for its $835 million buy of an industrial portfolio from Excessive Street Logistics Properties. Barclays supplied the debt, as first reported by CO.