Williams Equities has secured a $155 million commercial mortgage-backed securities (CMBS) loan for a 576,000-square-foot mixed-use office property in Manhattan's Chelsea neighborhood.
Citi Real Estate Funding provided a five-year CMBS loan that will replace existing debt and fund renovations and amenity enhancements to the building.
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Simon Ziff and Russell Schildkraut of Ackman Ziff handled the debt negotiations, while Joe Deikman of Citigroup (C) represented the lenders.
“We continue to fund great sponsors for our New York City office complex,” Ziff said in a statement. “This sponsorship clearly meets that criteria.”
Located at 28-40 West 23rd Street, the 12-story, two-tower, 578,105-square-foot mixed-use facility was built in 1911 and is located in the heart of Manhattan's famed Flatiron District off Sixth Avenue.
Tenants include retail giant Home Depot, which has signed a lease extension for the building's ground, lower and mezzanine floors, as well as offices for credit card company LAMP and Estee Lauder's fragrance company, Aramis.
The new CMBS financing will primarily go toward building improvements at 28-40 West 23rd Street. Over the past few years, Williams Equities has constructed new lobbies at two different entrances to the building, but this next round of financing will fund an updated atrium, skylights and a new rooftop deck. The owner also plans to build a new three-story penthouse in the 40 West 23rd Street section of the building.
Brian Pascus can be reached at bpascus@commercialobserver.com