Deutsche Bank AG, New York Branch has provided the financing backing Princeton International Property and its partners’ $170m acquisition of a 14-story, 200,000 sq ft commercial building at 111 East 59th Street in the Lenox Hill neighborhood of Manhattan.
Deutsche Bank and Princeton International Property did not respond to requests for comment, but city property records show that at least $85.1m in loans were provided for the acquisition.
The sale marks an end of an era for the property. Seller Lighthouse International, an organization that provides vision loss treatment and prevention services, occupies most of the building and had leased an in-house, 220-seat theater to The Academy of Motion Picture Arts and Sciences since 2002. But the latter organization will move out as a result of the deal.
Dune Real Estate Partners and Empire Capital Holdings are reportedly equity partners on the deal, and the trio of buyers together plan to be convert the lower floors of the building in order to attract a big-box retail tenant.
Early this year TPG acquired the majority of a $2.5bn portfolio of high-yield real estate loans from Deutsche Bank’s Special Situations Group, taking along with it a team of 11 origination and risk management professionals. In June, the bank’s former global head of commercial real estate, Jonathan Pollack, also departed, becoming chief investment officer for Blackstone’s debt platform, Blackstone Real Estate Debt Strategies (BREDS).