TODAY’S DEALS: JLL Closes $253M Sale of 103-Unit Historic Manhattan Apartment
JLL closes the sale of a 103-unit vintage Manhattan luxury building for $253 million; Red Mortgage Capital refinances three loans on Indiana seniors housing communities; and Northmarq arranges a $25 million Freddie Mac mortgage.
New York—Jones Lang LaSalle’s New York capital markets team has closed the sale of 737 Park Avenue for $253 million on behalf of the seller, Katz 737 Corporation. The 103-unit property was picked up by Harry Macklowe.
“This exclusive Park Avenue building is one of the finest New York City has to offer, and garnered intense interest from investors, as pre-war residential rental buildings in premier locations are almost unheard of,” says Jon Caplan, a vice chairman at JLL. “This was the first time in more than 65 years that this property has been on the market.”
737 Park Avenue was designed by noted architect Sylvan Bien and built in 1940. The building is located on the northeast corner of East 71st Street and Park Avenue. According to JLL, many of the investors interested in the property were considering the potential to convert the property to condos, as many nearby vintage luxury properties are currently run as coops.
Red refinances three Midwest seniors housing communities for $13.7M
Greensburg, Ind.—Red Mortgage Capital LLC has completed three loan refinances on a trio of seniors housing communities located in Indiana. The three separate loan applications were processed to secure non-recourse FHA insured financing in amounts of $2.3 million for Home Place, a 60-unit age-restricted community in Indianapolis; $3.8 million for Sanders Glen, a 111-unit licensed assisted living community in Westfield, Ind.; and $7.7 million for Morning Breeze, an 91-unit independent living/assisted living/skilled nursing facility in Greensburg, Ind.
The financings were completed for American Eagle LifeCare Corporation, a non-profit corporation that specializes in operating health care facilities for the elderly. American Eagle acquired the three communities in 2005 using tax-exempt and taxable bond proceeds totaling $13.9 million and subordinate tax-exempt bonds in the amount of $3.2 million.
“American Eagle is an outstanding non-profit owner and operator and the FHA transactions allowed them to lock in long term debt at a much lower rate than they were currently paying in connection with the bonds,” says Don Husi, managing director of Red Mortgage Capital. “The financing also provided additional funds for repairs and reserves to ensure the properties remain financially viable over the term of the new loans.”
NorthMarq arranges $25M Freddie Mac mortgage
St. Charles, Mo. — David Farrell, senior vice president and managing director of NorthMarq Capital’s Kansas City Regional office, arranged a fixed rate first mortgage of $25 million for Villages of Bogey Hills, a 480-unit multifamily community located at 2200 Lake Court in St. Charles, Mo.
Financing was based on a 10-year term and a 30-year amortization schedule and was arranged for the borrower by NorthMarq through its seller-servicer relationship with Freddie Mac through its Capital Markets Execution Program.
