Deutsche Bank provides $233m financing on UES residential acquisition

Deutsche Bank has provided $188.7 million in acquisition financing to SW Management for the acquisition of two apartment buildings on Manhattan’s Upper East Side, Real Estate Capital has learned based on city property records.

Deutsche Bank has provided $232.5 million in acquisition financing to SW Management for the acquisition of two apartment buildings on Manhattan’s Upper East Side, city property records show.

The financing includes a new $188.7 million mortgage loan that was consolidated with a $43.8 million of existing debt. 

250 East 63rd Street
250 East 63rd Street

SW Management paid the Elghanayan family $310 million for the properties: $130 million for the Eastwood Towers at 355 East 72nd Street and $180 million for Regency South at 250 East 63rd Street. Deutsche Bank did not immediately respond to requests for comment.

Despite the often talked about ramp up in regulations placed on commercial bank lenders, they continue to finance deals across US cities, particularly gateway markets, often teaming up with other banks or lending groups on large deals.

In April, Deutsche led a consortium that included Goldman Sachs and Morgan Stanley in providing a $1bn senior loan and $250m in mezzanine debt to developer Jeff Sutton and General Growth Properties (GGP) for the acquisition of the Crown Building at 730 Fifth Avenue in Manhattan.

Commercial banks continue to hold the largest share of the $2.83 trillion in commercial/multifamily mortgage debt outstanding, with $1.08 trillion, or 38 percent of the total, according to the Mortgage Banker’s Association. Looking solely at multifamily mortgages, however, agency and GSE portfolios and MBS hold the largest share, with $461 billion, followed by banks and thrifts with $344 billion.

Family-owned SW Management, based in New Rochelle, was established in 1958 with the purchase of a single, four-story walkup building in the Bronx, according to the firm’s website, which shows that the firm has since amassed as many as 200 properties in New York City and Westchester County.

 

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