The Moinian Group, one of New York’s largest privately held real estate investment companies, has landed more than half a billion dollars in combined financing for two Manhattan properties, including a midtown office building that had been in default.
The developer closed a $310 million loan for 535-545 Fifth Ave. near Grand Central Terminal, the Moinian Group and its broker, CBRE, said this week in separate statements. The office property, which has a combined footprint of more than half a million square feet and counts the NBA and Best Buy among tenants, had defaulted on its previous $310 million loan, originated in 2015 by Morgan Stanley, according to CoStar data.
Deutsche Bank and Société Générale originated the refinancing loan, a CBRE spokesperson told CoStar News.
“This refinancing underscores the value of prime Fifth Avenue assets and our disciplined approach to asset management,” Joseph Moinian, founder and chief executive of his namesake firm, said in a statement.
The new loan replaces existing debt on the property and provides long-term financing, the developer said.
The deal comes as Manhattan’s office leasing closed last year with its highest volume since at least 2019, driven by demand for top-tier properties especially near transit hubs such as Grand Central. The building is also just two blocks from the headquarters-heavy Park Avenue corridor, where major office landlords say the vacancy rate is in the single digits.
Separately, the Moinian Group secured a $200 million loan for 17 Battery Place, a 430,000-square-foot property at the southern tip of Manhattan featuring unobstructed views of the Statue of Liberty and Ellis Island, CBRE said, adding that the financing will “fund the continued conversion of the mixed-use building to include additional residential floors.”
The Moinian Group’s website lists the property as a high-rise undergoing a $7 million overhaul to feature a new park, lobby and elevators. The property, opened in 1903, counts among office tenants the New York Film Academy, Lifetime Studio and the Hudson River Foundation, according to CoStar data.
A Moinian Group spokesperson didn’t immediately respond to a CoStar News request seeking clarification on whether the residential conversion involves just parts of the building.
Deutsche Bank and Société Générale also originated that loan, the CBRE spokesperson said.
For the record
The CBRE team of Drew Anderman, vice chairman in the debt and structured finance group, along with Eddie Haber, AJ Bruno and Jared Fried advised the developer in both transactions. In addition, Rob Verrone of Iron Hound Management advised it regarding modifications to the 535-545 Fifth Ave. transaction.