First Republic Bank has provided a $47.5 million loan on 15 residential condominium units at the Marquand building in the Upper East Side neighborhood of Manhattan.
The bank provided the loan to real estate investment and development firm HFZ Capital Group on the 11 East 68th Street property at Madison Avenue, property records show. The borrower acquired the property in partnership with Vornado Realty Trust for $178.45 million in December 2011 with $125 million in financing from Deutsche Bank.
The borrower replaced the building’s existing market-rate apartments with high-end condos in 2013, while Vornado took control of the retail property on the condo’s ground floor at Madison Avenue. The building, known for its “Beaux-Arts Revival Style,” was built in 1913 on the former lot of 19th century financier Henry Gurdon Marquand’s mansion.
Last week, Real Estate Capital reported two other financings of Upper East Side properties: M&T Bank provided a $76.54 million loan on an Upper East Side mixed-use development between 80th and 82nd Streets to affiliates of Icon Realty Management, while Deutsche Bank provided $232.5 million on the Eastwood Towers at 355 East 72nd Street and $180 million acquisition loan on Regency South at 250 East 63rd Street to SW Management.
First Republic Bank originated $19.7 billion in loans last year, including $1.46 billion in multifamily loans and $7.6 billion in single-family loans, according to a statement from the bank. HFZ Capital Group is a real estate investment and development company based in Manhattan and is managing and developing over 6 million sq ft of Manhattan real estate, especially luxury condos.
A spokesperson for the bank declined to comment on the deal, while the borrower did not respond to request for comment.