Normandy Real Estate Partners, Meadow Partners, and AM Property Holding Corp. (the Sponsorship) today announced the refinancing of 80-90 Maiden Lane, having secured a $250 million floating-rate loan from global real estate investment manager, Invesco Real Estate. The two adjacent, newly renovated office buildings with ground-level retail sit in the heart of the Financial District and combine for over 610,000 square feet. NKF Capital Markets represented the Sponsorship.
“The newly-renovated properties at 80-90 Maiden Lane sit in a prime location in the Financial District - in close proximity to major subway lines, the PATH, and ferry services - and are adjacent to One Chase Manhattan Plaza, four blocks from the World Trade Center, and six blocks from the Seaport District,” said Travis Feehan, Principal, Normandy Real Estate Partners. “We’re excited to continue executing on our strategy with new leasing initiatives and continued capital improvements, including a full renovation of the retail façade.”
“80-90 Maiden is a very special project for ownership and we’re very pleased to have Invesco as a lending partner for the property’s re-introduction to the market,” said Greg Blake, Director, Meadow Partners.
“We’re excited to be working with an industry leading lender who also understands the ownership side. We expect this to be the beginning of a long and productive relationship,” said Andrew Shields, CFO of AM Property Holding Corp.
The NKF Capital Markets team was led by Vice Chairmen and Co-Heads, Debt & Structured Finance, Dustin Stolly and Jordan Roeschlaub, along with Managing Directors Nick Scribani and Chris Kramer, as well as Associate Director Dylan Kane also contributing.
“80-90 Maiden Lane offers substantial upside through new mark-to-market leasing with average in-place office rents over 30% below market,” said Mr. Stolly.
The Invesco Real Estate team included Yorick Starr, Senior Director, Structured Investments and Bert Crouch, Managing Director, Structured Investments. Mr. Starr commented, “With this loan, we are delighted to begin a productive relationship with both AM Property Holdings and Meadow Partners, while at the same time, expanding the previously successful partnership with Normandy Real Estate Partners.”
The loan has been originated by one of Invesco Real Estate’s strategies targeting attractive, risk-adjusted, predominantly income, returns through US commercial real estate loan originations with strong credit profiles.
The business plan for Maiden Lane is to reintroduce the properties to the Downtown Manhattan market, a newly-renovated, pre-war office asset and benefit from a significant mark-to-market opportunity, given the continued leasing strength witnessed in the submarket.
About Normandy Real Estate Partners
Normandy Real Estate Partners is a leading real estate investment management firm and operator with offices in New York City, Boston, Washington, D.C. and New Jersey with a track record spanning 20 years. The firm is a vertically-integrated investment and operating platform with a total of 120 employees with broad real estate experience in areas such as acquisitions, investment management, leasing, property management, construction/development and accounting. Our focus is primarily on acquiring office and mixed-use investments located in the Northeast and Mid-Atlantic CBD and transit-oriented submarkets where we own and operate one of the largest private real estate portfolios in the region totaling over 14 million square feet and a development pipeline of four million square feet. Our deep local relationships, vertically-integrated capabilities, and diversely-experienced team give us a distinct advantage, which enables us to consistently turn under-achieving real estate into exceptional high-yielding investments.
Normandy’s management platform is focused on two complementary investment strategies: i) value-add: a series of closed-end, fully-discretionary investment funds, backed by some of the world’s most prestigious institutional investors; and ii) core-plus: a series of separately-managed accounts for domestic and foreign institutional investors. Normandy currently manages approximately $1.5 billion of equity capital, representing total asset value of $3.3 billion. For more information visit www.normandyrealty.com.
About Meadow Partners
Meadow Partners is an independent, privately owned real estate investment and asset management firm that manages a series of closed-end private equity funds and separate accounts on behalf of institutional investors.
Since inception, Meadow Partners has raised in excess of $1 billion of equity for its investment strategies and has acquired more than $3 billion of real estate assets in its target markets of New York City, Washington, D.C., London, and Paris with a focus on value-add office, residential, retail, and hotel properties.
Meadow Partners has acquired and asset managed existing properties and planned developments aggregating more than 6.5 million square feet, encompassing more than 3.5 million square feet of commercial space, 3,400 multi-family residential units and 805 hotel rooms.
About AM Property Holding Corp.
A.M. Property which has over 30 years of experience in the real estate investment, construction and management industry is a company wholly owned by the Wasserman family. It operates several million square feet of office space in Manhattan and Long Island. The primary focus of the Wasserman’s is to locate under-performing but quality assets in areas with strong fundamentals, and then realize the upside potential through creative repositioning and active, hands on management.
About Invesco Real Estate
Invesco Real Estate is a global leader in the real estate investment management business with US$64.8 billion in real estate assets under management, 484 employees and 21 regional offices across the U.S., Europe and Asia*. Invesco Real Estate has been actively investing in core, value-add and opportunistic real estate strategies since 1992. Invesco Real Estate is a business name of Invesco Advisers, Inc., an indirect, wholly owned subsidiary of Invesco. Ltd.
Invesco Real Estate’s commercial mortgage business is actively originating senior and subordinate loans in primary and select secondary markets throughout the United States. With a focus on institutional quality real estate and sponsors, Invesco typically targets senior loans in excess of $50 million and mezzanine loans in excess of $20 million. All major property types are considered including office, multifamily, industrial, hospitality, and retail with selective consideration of specialty property types including student housing, senior housing and self-storage. As a floating-rate, non-recourse lender, most loans are structured with three to five years of fully extended term and up to 75% advance rates secured by core-plus and value-added collateral profiles.
*All data is as of 6/30/2018 unless otherwise noted.
About NKF Capital Markets
NKF Capital Markets, operated by Newmark Group, Inc., is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, our 16,000 professionals operate from approximately 430 offices in established and emerging property markets on six continents.
We provide access to a wide range of services, including asset sales, sale leasebacks, mortgage and entity-level financing, equity raising, underwriting and due diligence. The transactions we broker involve vacant land, new real estate developments and existing buildings. We specialize in arranging financing for most types of value-added commercial real estate, including land, condominium conversions, subdivisions, office, retail, industrial, multifamily, student housing, hotels, data center, healthcare, self-storage and special use. For further information, visit www.ngkf.com/capitalmarkets.
Newmark Group, Inc., which is listed on the NASDAQ Global Select Market under the symbol “NMRK”, is a publicly traded subsidiary of BGC Partners, Inc. (“BGC”), a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol “BGCP”. BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol “BGCA”.
Discussion of Forward-Looking Statements about Newmark Group
Statements in this document regarding Newmark Group that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. Except as required by law, Newmark Group undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark Group’s and BGC’s Securities and Exchange Commission filings, including, but not limited to, any updates to such risk factors contained in subsequent Forms 10-K, 10-Q, or Forms 8-K.