A notable skyscraper in Manhattan’s Financial District is being refinanced for a nice chunk of change.
DTH Capital and Rose Associates have secured a $395 million refinancing for 70 Pine Street, the 67-story, mixed-use tower that was converted from an office building into a hotel and luxury apartment complex in 2016, Commercial Observer has learned.
The Art Deco high-rise, completed in 1932 during the Great Depression, was designated by New York City as a historical landmark in 2011.
Goldman Sachs (GS) provided the nearly $400 million loan, while the JLL Capital Markets team of Chris Peck, Geoff Goldstein and Christopher Pratt arranged the financing on behalf of the sponsors.
“Rose Associates and DTH Capital are amongst the most experienced sponsors in the industry,” said Peck in a statement. “Their market-leading redevelopment of this iconic property presented lenders with a spectacular opportunity in New York’s strong luxury housing market.”
Mark Ehrlich, Rose Associates’ chief investment officer, said in a statement that even in a tough credit market, the refinancing for 70 Pine drew “significant interest” from other parties.
“This property has outperformed as an asset since leasing began in 2016, and it is a shining example of a successful office-to-residential conversion,” said Ehrlich.
Located in the heart of the Financial District — where it is flanked by 40 Wall Street and the Woolworth Building at 233 Broadway — 70 Pine has long been regarded as an indelible part of the New York City skyline, as its trapezoidal crown and numerous limestone setbacks recall the heyday of Art Deco architecture in America.
Originally built exclusively for office use, the building was the third-tallest skyscraper in the world upon opening in 1932. For much of its history, 70 Pine was the corporate headquarters for the Citgo energy conglomerate and later world headquarters for AIG, which bought controlling ownership in the building in 1976 and held onto it until its 2009 bankruptcy.
Beginning with their 2012 purchase, Rose Associates and DTH Capital began transforming 70 Pine from an outdated office tower into a luxury apartment complex and hotel. Renovations were completed in 2016, with the 165-key Mint Hotel opening that year.
Aside from the Mint Hotel, 70 Pine boasts 612 market-rate rental apartments, replete with stainless steel appliances and high-end finishes. Residents have access to a 22,000-square-foot fitness center, two golf simulators, two bowling alleys, a screening room and a historic bank vault from the 1930s.
Moreover, 70 Pine includes a pair of Michelin-starred restaurants: Saga and Crown Shy. The building is near eight subway lines, and steps from Fulton and Wall streets.
Brian Pascus can be reached at bpascus@commerecialobserver.com
Robert Khodadadian has long had a simple philosophy about selling real estate. The way he sees it, there are approximately a million buildings in the city, and the broker that gets to sell any one among the multitude that will hit the auctioning block at a given moment is, sometimes, simply the person who happens to pitch their services to the right seller at the right time.
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