NEW YORK CITY—The ownership of the former “Lingerie Building” at 180 Madison Ave. has secured $110 million in first mortgage financing from JP Morgan Chase and Landesbank Hessen-Thuringen Girozentrale (Helaba).
HFF, which represented the institutional investor in the transaction, placed the loan with JP Morgan and Helba. The HFF debt placement team representing the borrower was led by senior managing director Michael Tepedino and managing director Michael Gigliotti.
The 23-story historic office building, built in 1926, is reportedly owned by Prudential Real Estate Investors. PREI acquired the property with the Clarett Group from Sitt Asset Management and Eretz Group for over $146 million in August 2008, according to the Commercial Observer. In its early days the property was a premier location for lingerie retailers.
The 280,953-square-foot property is in the final stages of a comprehensive renovation that has included an extensive lobby renovation, elevator modernization, window replacements, as well as electrical upgrades.
The building is currently 72% leased. Ownership continues to execute its business plan to demolish and pre-build space to a “plug and play” ready condition as tenants' leases expire, HFF states.
The location of the property appeals to tenants across a wide array of industries, but there has been a growing demand from the technology, advertising, media and information sectors that are highly concentrated in the Midtown South office market.
Two of the top five largest tenants located at the building—the Rubicon Project and Unified Social—are prime examples of the growing TAMI firms flocking to Midtown South. Both tenants signed leases at the property in the last few years and both have already expanded within the building since their arrival, HFF officials note.
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