NEW YORK CITY-Hypo Real Estate Capital Corp. closed a $130 million loan for 681 Fifth Ave. The building, located between 53rd and 54th streets in the Plaza District submarket of Manhattan, is currently undergoing a total renovation of all building systems.
The 17-story, class A office and retail property measures 82,500 net rentable sf. The sponsors of the deal are Robert Siegel and descendants of the Hermès family. RCG Longview served as mezzanine lender, on the deal.
In March of 2008, Tommy Hilfiger executed a 15-year lease for 22,500 sf on the first four floors and two basement levels. The Tommy Hilfiger store will serve as the company’s global flagship store and is expected to open for the 2008 holiday season. Class A office space–for occupancy by the end of this year–will be comprised of 6,000 sf single floor plates with 14-foot ceilings on each floor, according to a prepared statement.
Matthew Astrachan and Mitchell Konsker of Cushman & Wakefield will market the space for lease. Cushman & Wakefield could not provide GlobeSt.com with further details besides what is in the release. Hypo tells GlobeSt.com that they cannot provide further information than what is in the release.
“We believe this is the perfect transaction for HRECC based on the borrower’s opportunity to create value over the loan term,” says Evan Denner, deputy CEO of Hypo Real Estate Capital Corp., in a prepared statement. “We are extremely pleased to present the client with flexible, floating-rate balance sheet financing that will facilitate the clients’ execution of the business plan.”
Dana Valenti, director at Hypo Real Estate Capital, says in a prepared statement that “the scarcity of exceptional flagship retail locations and incredible demand for boutique office space in the prominent Plaza District provides for an incredible repositioning and value creation opportunity for the Sponsor.”
KT Stallings Bren, managing director at Metropole Realty Advisors Inc., says in a prepared statement that the loan structure “will enable us to seamlessly achieve the repositioning of this premiere Fifth Avenue property to its original glory making it an ideal class A location for retail fashion showrooms, family offices, hedge funds, and other premiere tenants.”
As GlobeSt.com previously reported, Metropole Realty inked a deal to acquire the Midtown site from Fortunoff in a sale-leaseback transaction for $86 million.