Safehold and Melohn Capital are refinancing a leased fee interest on a Downtown Manhattan office property, namely the ground term lease of the building known as 32 Old Slip, which dates back to 2015 when RXR acquired the building.
The financing was provided by Goldman Sachs, Barclays and Morgan Stanley, with Newmark arranging the deal. Newmark's Jordan Roeschlaub, Daniel Fromm and John Caraviello were all involved with the transaction.
According to The Real Deal, iStar, which merged with Safehold in 2023, purchased equity in 32 Old Slip a few years ago. And Melohn took on the fee interest in the property for $197.5 million in 2015.
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The Class A office tower spans 1.2 million square feet and stands 36 stories. Amenities include a coffee bar, an outdoor plaza, a parking garage and conference and event space. Some major tenants at the building include Harris Law, CFG Merchant Services and GTN Americas, according to information services CompStak.
This year, RXR has found its hands full with other Manhattan office assets — most notably with 1211 Avenue of the Americas in Midtown Manhattan. The Commercial Observer reported that it landed a three-year extension of the $1.04 billion commercial mortgage-backed securities (CMBS) loan at the property. That came after Crain's New York Business reported in March that Rupert Murdoch's media brands, which operate through Fox Corp. and News Corp., are expected to trim their footprint at the office property by nearly 330,000 square feet.
Also, RXR teamed up with Sagehall to recapitalize 530 Fifth Avenue for $180 million earlier this year, according to a separate report from CO.
April marked a pullback in office activity for Manhattan despite the market showing one of the strongest recoveries in the nation since the pandemic. Leasing volume was 3.38 million square feet, representing a 26.2 percent decrease from the previous month, according to a report from Colliers. But still, the category was up 23 percent year-over-year and 25.4 percent above the 10-year monthly median, suggesting that the market remains healthy.
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Anthony Russo
Anthony Russo has been contributing to GlobeSt. since July 2024. Along with CRE, his financial background expands to capital markets, the economy, and consumer issues. Previously, he has written for CapitalWatch and was a senior reporter for The US Sun.
