A life insurance company owned by AIG has provided a $50.2 million financing to an affiliate of Edison Properties on a 12-story office building at 119 West 24th Street in the Chelsea neighborhood of Manhattan.
American General Life Insurance Company provided the loan to the Edison company, which purchased the property from an affiliate of the Extell Development Company in September 2015 for $86.6 million, city records show. The Kaufman Organization, which signed a 99-year lease in April 2014, currently manages the property.
Records also show that Anheuser-Busch InBev, the St Louis-based brewery of Budweiser, has updated its April 2015 tenant agreement with Kaufman and will continue to rent eight floors in the building. The co-working space Alley NYC also occupies three floors in the building.
Office leasing activity in Midtown South, which includes Chelsea, was up 3.1 percent year-on-year at the end of Q2, driven by the strong demand from the growing technology and media sector in the area, a recent Cushman & Wakefield report shows. More than 2.9 million square feet of new leases were completed in Q2.
However, the report also notes that despite the positive trends occurring throughout the Midtown South office sub-market, there has been an increase in available sublease supply there, rising by 65.5 percent to 935,773 square feet since this year’s low of 565,290 square feet in February.
“Although not detrimental to the market, it is a trend to watch closely as increased sublease supplies have impacted other key US markets, like San Francisco and Chicago, earlier this year,” the report reads.