Wells Fargo has provided $56.2 million for the acquisition of two commercial properties in Midtown Manhattan that will be replaced by a senior living facility.
The bank provided the loan to the real estate investment trust Welltower to purchase adjoined buildings at 139 East 56th Street for $114.9 million, newly released property records show. The trust purchased one building for $60.9 million and the other for $54 million.
Ohio-based Welltower has partnered with Hines, a private real estate investment firm based in Houston, on plans to demolish the existing buildings in order to make way for the construction of a 15-story senior living community with retail at the base, according to a prepared statement.
The two firms purchased the adjoined properties from Stephen Meringoff and Dennis Riese, who purchased the properties in October 2007.
Earlier this month Wells Fargo provided a $150 million financing on a 52-story Tribeca Tower apartment building at 105 Duane Street in Manhattan, while the bank also led the $750 million financing of the One New York Plaza office building in lower Manhattan last month. The bank was the top commercial mortgage loan originator in the US last year.
Welltower owns more than 1,400 properties in high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties. Hines is a private global real estate investment firm with $89.1 billion of assets under management.
Wells Fargo and Welltower declined to comment on the financing, while Hines did not respond to requests for comment.