DTH, Rose Associates Land $395M Refi for NYC Mixed-Use Asset

Goldman Sachs provided the loan, which retires earlier debt.

A joint venture of DTH Capital and Rose Associates has secured a $395 million refinancing for 70 Pine St. a luxury mixed-use property in New York City’s financial district. Goldman Sachs provided the funds, which will pay off a $386 million loan originated by the investment bank in 2019, according to Yardi Matrix data. JLL arranged the financing on behalf of the borrower.

The building encompasses 612 apartments, a 165-key Mint House hotel and more than 39,000 square feet of retail space. Retail tenants include Michelin-starred restaurants, a cocktail bar, beauty salon, coffee shop and gourmet markets.

Originally built in 1932 as an office property, the building was renovated and converted to a residential property in 2016. DHT acquired the asset in 2011 for $205 million, with Rose Associates soon joining the endeavor and the partners spending $600 million on the conversion project. The apartments are spread across studio, one-, two- and three-bedroom floorplans, along with penthouse layouts, all ranging between 506 and 2,393 square feet.

Residences feature in-unit washers and dryers, 12-foot ceilings and private terraces for select units. Common-area amenities include two golf simulators, a 22,000-square-foot fitness center, a screening room and coworking lounges. Located in lower Manhattan, the building is within walking distance of the Wall Street subway station.

JLL Senior Managing Director Christopher Peck, Managing Director Geoff Goldstein and Vice President Christopher Pratt led the Debt Advisory Team that arranged the financing. Peck was recently involved in securing $520 million in financing for a mixed-use project in Brooklyn developed by The Carlyle Group and Property Markets Group.

Office-to-residential conversions surge

New York City has the second largest office-to-apartment conversion pipeline in the U.S., with 5,215 units representing an 18 percent year-over-year increase, behind only Washington, D.C., according to Rent Café research. This surge in conversions is due to the convergence of different trends such as the continuation of the office market’s headwinds, rising housing demand and relative availability of financing for this type of project.

One of the largest conversion projects currently underway is at the 30-story 55 Broad St., repurposing the building into 571 luxury residential units. Metro Loft and Silverstein Properties are developing the community. That project will address residential needs in the area as it manages to circumnavigate zoning restrictions that wouldn’t allow a new structure in the area, Architect John Cetra told Multi-Housing News in a recent interview.

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