Taconic Partners refinanced its 817 Broadway office building near Union Square with a $130 million loan.
GreenBarn Investment Group and Sabal Investment Holdings led the financing with a $37.5 million mezzanine loan, while Ares Asset Management provided a $91 million senior loan, the lenders told The Real Deal.
Charlie Bendit and Paul Pariser’s Taconic bought the 14-story, 139,000-square-foot building at the corner of East 12th Street for $109 million in 2016, and then launched a $40 million gut renovation.
The building is 99 percent leased to tenants, including Union Square Ventures, Inspired Capital and Unity Technologies.
A Newmark team led by Adam Spies and Adam Doneger arranged the recapitalization.
Taconic and its partner, Nuveen, put the building on the market earlier this year, eyeing either a full-out sale or a recapitalization amid Manhattan’s rebounding office market after the Covid-era doldrums.
Office leasing in Midtown South has totaled nearly 5.8 million square feet this year, up from 3.6 million the same time last year, according to CBRE. The availability rate, however, remains a challenge even though it’s trending downward.
Availability hit 19.6 percent in September, down from 22.8 percent a year earlier.
The improving outlook in Manhattan’s office sector has prompted a spate of big-ticket deals by investors who see opportunities in the market’s recovery. SL Green recently went into contract to buy the Park Avenue Tower in the Plaza District for $730 million, and RXR in August closed on its $1.1 billion purchase of 590 Madison Avenue.
Elsewhere, Taconic late last year sold a pair of office and retail condos at its Essex Crossing megaproject on the Lower East Side to Deutsche Bank for $237 million.
GreenBarn Investment Group is an affiliate of Rithm Capital, which last month agreed to buy Paramount Group for $1.6 billion.
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