$US125 million financing for AREA Property Partners secured by The Apthorp, New York
New York, 01 Aug 2012
Macquarie developed a customised financing package for AREA Property Partners to facilitate AREA's discounted purchase from a European bank of an existing senior mortgage secured by The Apthorp, a luxury condominium building located in Manhattan's Upper West Side. AREA is an institutional real estate fund manager with $US13 billion invested since 1993.
The financing consisted of a $US125 million senior mortgage, split between first-out and last-out notes, and a $US60 million senior mezzanine loan with a partial PIK. Macquarie arranged the senior mortgage financing and brought in a co-lender for half of it, in addition to providing 40 per cent of the senior mezzanine loan, for a total of $US86.5 million between the mortgage and senior mezzanine.
This provided AREA with a complete financing solution that allowed it to recapitalise the property for unit renovations and other capital items to facilitate the sale of the remaining condominium units.