Acore Refis 77 Water Street with $128m loan – Trade Observer
A joint venture between Wise Real Estate and Main real estate investors took on $127.5 million in debt to refinance a 52-year-old office tower in Lower Manhattan, Commercial Observer can first report.
Acore Capital provided the 60 month variable rate loan for sponsorship 77 Water Street. Sage is the rental and management arm of William Kaufman Organizationlongtime owner of the property built in 1970.
Eastdil Secureit is Grant Frankel, Ethan Pond and Tanner McNeill arranged the transaction.
“We are thrilled to have the opportunity to work with tremendous sponsorship at Sage and Principal, whose respective track records speak for themselves,” Eric Ramirez, CEO of Acore, said in a statement. “The combination of Sage’s multi-generational ownership and Principal’s institutional expertise has made this transaction an attractive opportunity for us and we are confident in their vision for the future of this asset and their ability to navigate a market evolving.”
The 26-story 77 Water Street is about 70% occupied, with an engineering firm Arup and law firm Lewis Brisbois Bisgaard & Smith as anchor tenants leasing over 100,000 square feet each. The 614,000 square foot office tower features an open plaza with acacia trees, streams, walkways and a turn-of-the-century wood-framed candy store. It also features a sculpted steel replica of a World War I Sopwith Camel fighter plane.
Jonathan IgerCEO of Sage Realty, said the proceeds from the refinance will be used to redevelop the square, the arcade and the hall of the establishment. Sage also partners with a landscape architect MPFP design and renovate the interior and exterior of the ground floor.
“The building is attracting phenomenal rental and I think it goes back to the bones of the building, which is great for the early 1970s, and it’s just time to put on a new suit and dress in it,” Iger said. . “We really see it almost as a responsibility to create an inviting space, and that’s what we asked our landscape architects to achieve.”
Iger said the environment for obtaining loans amid current market volatility is “confusingand “very challenging,” which underscores the importance of having a solid business plan to compensate for the inability to be aggressive in increasing rents. Securing loans is particularly difficult for office buildings due to uncertainty over hybrid working trends, but Iger said he expects 77 Water Street to be well-positioned to attract a variety of tenants. of the financial services sector, including technology companies, given the location of the property.
“It’s really become a real 24/7, 365 [day] region, and I think we’re really starting to see that even more with the proliferation of entertainment and retail offerings there,” said Iger, who noted that a new pickleball facility was recently ink near 28 Liberty Street. “I think those are some of the key things to attract tech companies.”
Andrew Coen can be reached at [email protected].