Iconic McGraw Hill Building Gets Financial Help
- Sep 21, 2015
An iconic office building in Manhattan received financial help from an affiliate of GFI Capital Resources Group, Inc.
Deco Towers Associates, the owners of the 33-story office building sitting at 330 W. 42nd St. in Midtown West, received $150.6 million in financing. The floating-rate loan was secured by GFI Realty Services’ Director of Investment Sales and Finance Daniel Lerer and Senior Director of Finance Will Watkins. As detailed in an official statement, the duo procured the 20-year loan from Natixis. Completed in 1931 for McGraw-Hill to serve as the publishing firm’s headquarters for several decades, the 590,000-square-foot building also housed corporate offices, warehouse, retail, manufacturing, and other facilities. Deco Towers Associates purchased the asset in 1994, and immediately invested $7 million in renovations and technology upgrades at the site. The building—a veritable Art Deco piece that was declared a National Historic Landmark in 1989—was designed by architect Raymond Hood to support massive printing presses, so it would allow for a potential conversion to loft-style, open-floor office layouts that are in high-demand in the area. “We were able to successfully highlight the building’s history, stability and potential. Ultimately, we secured an attractive deal for the sponsor with a competitive floating-rate loan,” said Daniel Lerer. The asset is currently about 90 percent occupied and, according to PropertyShark, is managed by Newmark Grubb Knight Frank. Average asking rents at 330 W. 42nd St. clock in at $160 per square foot. Image via Google Street View