JDS Refis Steinway Hall, Plans Apt. Tower Next Door

NEW YORK CITY-A partnership led by JDS Development Group has obtained $230 million in financing to acquire Steinway Hall at 109-113 W. 57th St. as well as recapitalize and consolidate an adjacent development parcel. A 900-foot apartment tower with retail is planned for the parcel at 105-107 W. 57th St., which JDS acquired in May from Starwood Capital Group, according to published reports.

Meridian Capital Group arranged the one-year, interest-only loan, which was provided by Annaly Capital Management, according to industry data. Meridian managing directors Aaron Appel and Moshe Majeski originated and executed the financing, which features a fixed-rate and two six-month extension options.

GlobeSt.com reported in March that piano maker Steinway Musical Instruments Inc., which has occupied Steinway Hall since the 15-story property was completed in 1924, sold its stake in the property to a partnership of JDS, Property Markets Group and Atlantic Development Group for $46 million, including air rights. “The acquisition financing provided the sponsorship with the necessary capital to create a truly extraordinary development assemblage,” Appel says in a release.

Ultimately, Appel continues, “JDS Development Group will restore Steinway Hall to its original grandeur and will construct a more than 900-foot tall tower next door. Given the creativity and ability of the sponsor, the new property is destined to become an iconic New York City skyscraper, building on the unique pedigree of Steinway Hall.”

In May, Bloomberg reported that JDS was in talks with the Bloomberg administration on how Steinway Hall could be incorporated into the development. The property was landmarked in 2001, and as such cannot be demolished.