Cornerstone pushes $1bn worth of loans in just a few short weeks

Cornerstone Real Estate Advisers has provided a $226.6m loan backing 45 Broadway in Downtown Manhattan, part of an unprecedented lending spree from the firm over the last several weeks.

Cornerstone Real Estate Advisers has provided a $95m loan backing 45 Broadway in Downtown Manhattan, part of a significant lending spree from the firm over the last several weeks.

Like the 80-foot waterfall that plunges into a 3,000-gallon pond in the 32-story Financial District office tower’s lobby, Cornerstone has now poured out nearly $900m in loans in just over a month, according to public documents and reports from Real Estate Capital.

45 Broadway
45 Broadway

The surge in originations started early last month when the firm provided a whopping $556m construction loan for a 47-story, 900-ft, 670,000 sq ft office tower set to rise at 425 Park Avenue in New York City — one of the largest deals of the month, if not the year.

Next it was $225m in loans on two other new developments: a $165m in financing to New England Development and Clarion Partners for the Palm Beach Outlets in West Palm Beach, Florida, an up-and-coming 459,633 sq ft retail center; and $60m in mezzanine financing for the construction of a 755-room, dual-branded W + Element hotel development in Center City Philadelphia, Pennsylvania.

Cornerstone’s annualized pace over the last five weeks eclipses $9bn. Not bad when scrubbed against the $5.3bn the firm financed or arranged in all of 2014 (based on the Mortgage Bankers Association’s 2014 Commercial Real Estate/Multifamily Finance Annual Origination Rankings).

Cammeby’s International Group purchased 45 Broadway, known as the Broadway Atrium, in 2000 for $60m. The Cornerstone loan takes out a previous $76.9m loan JP Morgan provided in December 2005, securitized as part of JPMCC 2005-LDP5.

Cammeby’s also recently refinanced a separate $70.3m securitized loan tied to that deal after securing a $117m loan last month from New York Community Bank at 32-42 Broadway, across the street from 45 Broadway.

City property loans confirm the new loan (in the amount $226,620,286) at 45 Broadway, but additional plans for the funds could not be confirmed. Cornerstone did not respond to requests for comment.

Among other recent deals, in April Cornerstone provided a $70m loan for the acquisition of an office campus in San Diego, California; in November, on behalf of subsidiary MassMutual, it provided a $150m loan to refinance an office tower in San Francisco, California; and in October it arranged a $56.5m loan backing the Residence Inn Boston.

The koi pond at 45 Broadway
The koi pond at 45 Broadway

As part of a $500,000 renovation of the property in 2007, owner (and borrower) Cammeby’s added to the pond an array of colorful plants and 120 koi, a fish known for its longevity. It may be interesting to see how long Cornerstone’s latest lending push will continue. After stepping into the business as a commercial real estate manager in 1994, the Massachusetts Mutual Life Insurance Company affiliate has amassed more than $47bn in assets under management over the course of two decades.

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