CBRE Capital Markets’ Debt & Structured Finance team has secured $73.4 million in financing for the acquisition and redevelopment of 163 Varick Street, to be re-branded as 60 Charlton Street, a to-be-developed office building in the Hudson Square submarket of Manhattan.
The property will be redeveloped into a modern, mixed-use boutique Class A office building that combines premier office product with ground-level retail. The redevelopment plan calls for a complete gut renovation of the existing six-story, 60,000-sq.-ft. building, and the addition of five new steel and glass floors on top of the existing structure, which will increase the total size of the asset to approximately 100,000 sq. ft.
Shawn Rosenthal, Jason Gaccione, Sunny Somaiya, and Kyle Baldwin of CBRE’s Midtown Manhattan office secured the loan on behalf of sponsorship, a joint venture between APF Properties and Drake Street Partners. The acquisition and construction financing was provided by SL Green and ACORE Capital.
“Both SL Green and ACORE were attracted to the unique nature of the redevelopment – what will be a new boutique office asset in a dynamic submarket – as well as the strong qualifications of the highly capable sponsor group of APF Properties and Drake Street. Within a couple of years Hudson Square will see its first best-in-class, newly constructed, boutique office building,” said Mr. Rosenthal.
Located in the heart of Hudson Square, the property’s proximity to live-work-play amenities and excellent transportation access will appeal to a broad spectrum of tenants, particularly smaller users looking for full floor(s) identity within new state-of-the-art product. Construction is anticipated to commence in 2018.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
