Days after David Werner Real Estate Investments closed on the acquisition of Midtown office tower One Dag — Tishman Speyer is getting involved with the debt associated with the acquisition.
Under the deal, J.P. Morgan originated a $215 million whole-loan that includes $40 million in mezzanine debt, which Tishman announced Monday that it has purchased. The move, from Tishman's point of view, marks an investment into a high-quality asset.
"One Dag presented a compelling opportunity to invest in a premier quality U.N.-adjacent asset at a compelling basis for an experienced institutional sponsor," Tishman Speyer Global Head of Debt Randall Rothschild said in a statement.
"This loan further reflects Tishman Speyer's continued confidence in the Manhattan office sector and our ability to invest in its future through multiple platforms."
David Werner Real Estate, last week, with 601W Companies, struck a deal to buy One Dag for $270 million, a roughly $330 million discount from the price Rockpoint paid for the 50-story building in 2019. More than $20 million worth of capital improvements has been poured into the property, which includes updates to the lobby and modernized systems.
Some other features at the 870,000-square-foot asset include below-grade parking, an aluminum curtain wall façade, timeless glass and retail, which is fully leased and anchored by Whole Foods. Also, international players operate at the building, including the United Kingdom, the Federal Republic of Germany and the United Nations.
Plus, One Dag is within walking distance of Grand Central Terminal and various retail options.
Office leasing in Manhattan continues to accelerate. In fact, with the 4.24 million square feet in signings posted in May, that now puts the market in position for its best annual leasing period since 2000, according to a market report from Colliers.
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