JP Morgan Investment Management has provided a $180m loan to The Georgetown Company for the acquisition of an automotive dealership and service facility most recently owned and occupied by The Ford Motor Company.
The one-and-a-half-year, non-recourse acquisition and predevelopment bridge loan, which carries three six-month extension options, gives The Georgetown Company and an investment group time to complete a redevelopment and the option to prepay and refinance with a larger construction loan.
The Georgetown Company paid $255.5m for the property at 787 11th Avenue, putting the loan-to-value on the loan at 70 percent.
The eight-story, 470,000 sq ft facility was delivered vacant at closing. The developers plan to redevelop the structure into a Class A mixed-use commercial property that will incorporate office, retail and automotive users.
Located on the far west side of Manhattan, the property is located along a stretch of 11th Avenue surrounded by various car dealerships, once commonly referred to as Automobile Row. The Ford Motor Company paid $73m in 1997 to buy and rebuild the historic industrial building at the address. The building was completed in 1929 as the Packard Motor Car Company Service Building.
The neighborhood, north of Hudson Yards and west of Columbus Circle, has changed rapidly with an influx of residential development over the years. The Durst Organization and TF Cornerstone are among the New York-based developers with residential projects in the works.
Jason Gaccione, Shawn Rosenthal and Michael Sherman, of CBRE’s Midtown Manhattan office, along with Russell Schildkraut, of Ackman-Ziff, facilitated the financing on behalf of the borrower.