A joint venture between Tribeca Investment Group, Meadow Partners and PGIM Real Estate has secured a total of $150 million in financing—as part of the $350 million overall capital improvement plan—for the renovation of a 19-story office tower at 295 Fifth Ave. in Manhattan’s Midtown South neighborhood.
A Newmark team secured the Deutsche Pfandbriefbank loan on behalf on the borrowers. CommercialEdge reveals that the ownership trio purchased the 710,000-square-foot office building back in 2019 from Manhattan Properties. The owners paid $375 million for the asset and signed a 99-year ground lease agreement, the same data provider shows.
Originally built in 1920 and fully renovated this year, the historic asset is situated in the Park Avenue South Square Park, between Madison Square Park, Penn Station and Grand Central. Upon final overhaul, the reimagined 295 Fifth Ave. is set to feature a two-story, 34,000-square-foot penthouse, a new double-height lobby, as well as revamped windows, elevators and HVAC systems.
Flight to quality
Besides interior upgrades, the joint venture’s capital improvement plan calls for an array of outdoor spaces, terraces and a new amenity center. Offering access to the area’s mix of lifestyle amenities, the property is positioned in one of New York City’s strongest office submarkets.
Surpassing other Northeastern markets, Manhattan remains a national leader for office sales and the only market to go north of $5 billion, reaching a total volume of $5.56 billion in office transactions year-to-date, as of October.
The team that secured the financing on behalf of the collective ownership was led by Newmark’s Vice Chairmen & Co-Heads of the Debt & Structured Finance team Dustin Stolly and Jordan Roeschlaub, together with Senior Managing Directors Christopher Kramer and Nick Scribani, Director Ben Kroll and Finance Analyst Holden Witkoff.
In a prepared statement, Roeschlaub said that the overhaul would attract the city’s office users looking for quality assets in a post-pandemic environment.