MRECS provides $200m to refi Midtown office condos

Mack Real Estate Credit Strategies has reportedly placed a $200 million loan to refinance Meadow Partners’ office condominiums at 866 United Nations Plaza on the east side of Midtown Manhattan. Meadow Partners purchased the property from Vornado Realty Trust in December of 2013 for $200 million, at the time financing the purchase with $140 million […]

Mack Real Estate Credit Strategies has reportedly placed a $200 million loan to refinance Meadow Partners’ office condominiums at 866 United Nations Plaza on the east side of Midtown Manhattan.

Screenshot 2016-05-04 at 5.13.55 PMMeadow Partners purchased the property from Vornado Realty Trust in December of 2013 for $200 million, at the time financing the purchase with $140 million in consolidated mortgage debt from Blackstone Mortgage Trust (BXMT), city property records show.

The developer subsequently converted the property’s six stories of offices into condominiums and began selling them in February of last year, banking that tenants would prefer to own their spaces as office rents continued to rise.

Meadows partner Jeffrey Kaplan told the Wall Street Journal last year that he intended to sell the property, which sits at the base of two 32-story residential towers that were not part of the new financing, by the year 2020.

MRECS was launched in October of 2014 when parent company Mack Real Estate Group hired Peter Sotoloff, a former Blackstone executive — and keynote speaker at Real Estate Capital’s inaugural conference in New York City — to head the platform.

MRECS has focused on construction loans, transitional and distressed opportunities. Last year the platform provided a $55m loan to Madison Equities for the construction of a condo tower being developed at 45 Broad Street in Downtown Manhattan. Commercial Observer first reported on the new financing.

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