Lightstone Capital, the real estate debt platform of stone of lightannounced today that it has provided a senior loan of $52 million for a two-building, 152,000 square foot portfolio of commercial properties in the Midtown South neighborhood of Manhattan.
The transaction allows the sponsor, R&B Realty Group, to refinance an existing loan on the properties, located at 28 West 36th Street and 32-36 West 39th Street.
Lightstone Capital offers sponsors flexible, creative and immediate financing solutions. Loans range in size from $5 million to $100 million and are secured by real estate assets located in entry markets.
The West 36th property is a 12-story, 66,000 square foot Class B multi-tenant office building. Its tenants are a wide variety of small businesses, including a fashion/photo studio, professional services, e-commerce business, among others. It has a retail space on the first floor.
The West 39th building is a 14-story, 86,000 square foot Class B multi-tenant office building, also with retail on the ground floor. Although currently a rental property, it is being converted into office condominiums, with full sales expected to begin by Q3 2022.
“Lightstone Capital prides itself on its speed of execution and we closed in 10 business days,” said Eugene Rozovsky, Senior Managing Director, who leads Lightstone Capital. We closed more than $200 million in loans in the first quarter of 2022 and expect to reach $750 million this year, he added.
“This portfolio consists of a high quality, cash flow office building offering affordable rents and a prime commercial condominium building with competitive pricing, both in excellent locations,” said added Rozovsky. “It has a diverse tenant base, from professional services to family businesses to entrepreneurs. These buildings are historically 90% occupied and we believe that the condominiums will sell quickly. »
The properties are located in Midtown South, within a six-block radius of Bryant Park, Penn Station, Grand Central Station, Madison Square Garden, the Empire State Building, and other highly recognizable landmarks and transportation hubs. This location is one of the most developed neighborhoods in the United States and offers easy access to all of New York City. The West 39th Street property is adjacent to Amazon’s Fifth Avenue headquarters.
The opportunity was presented to Lightstone Capital by Lantern Real Estate.
“We are pleased to have worked on behalf of R&B Realty Group to secure this financing from Lightstone,” said Tal Bar-or, co-founder of Lantern. “All parties worked tirelessly to close this transaction in just 10 business days, exemplifying our team-oriented work ethic and the strength of our relationships.”
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