The redevelopment calls for the addition of five new floors at the 163 Varick St. office building.

NEW YORK CITY—A joint venture of APF Properties and Drake Street Partners has secured more than $73 million in financing for the acquisition and redevelopment of 163 Varick St.

The property, which is to be rebranded as 60 Charlton St., will when completed, involve the complete gut renovation of the existing six-story, 60,000-square-foot building and the addition of five new steel and glass floors on top of the existing structure, which will increase the total size of the boutique office building to approximately 100,000 square feet. The property will also feature ground-floor retail space.

Shawn Rosenthal, Jason Gaccione, Sunny Somaiya and Kyle Baldwin of CBRE's Midtown Manhattan office secured the $73.4-million loan on behalf of the project sponsors, a joint venture between APF Properties and Drake Street Partners. The acquisition and construction financing was provided by SL Green and ACORE Capital.

“Both SL Green and ACORE were attracted to the unique nature of the redevelopment – what will be a new boutique office asset in a dynamic submarket – as well as the strong qualifications of the highly capable sponsor group of APF Properties and Drake Street,” says Rosenthal. “Within a couple of years Hudson Square will see its first best-in-class, newly constructed, boutique office building.”

Heritage Realty reportedly sold the property in July for approximately $65 million. The asset was acquired by Heritage in 2007 for $19 million, according to a report in the Real Deal.

NEW YORK CITY—A joint venture of APF Properties and Drake Street Partners has secured more than $73 million in financing for the acquisition and redevelopment of 163 Varick St.

Heritage Realty reportedly sold the property in July for approximately $65 million. The asset was acquired by Heritage in 2007 for $19 million, according to a report in the Real Deal.

Instant Insights /

New Owner Secures Financing for Hudson Square Office Redevelopment

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