JLL arranges $395M in financing for trophy asset in NYC's Financial District

Rhea-AI Summary

JLL's Capital Markets group secures a $395 million refinancing deal for 70 Pine Street, a mixed-use property in New York City, featuring luxury apartments, retail space, and a hotel. The property offers top-tier residential amenities, world-renowned restaurants, and convenient access to major employment centers and transportation hubs.

Insights

Market Research Analyst

The refinancing of 70 Pine Street, a prominent mixed-use property in New York City, underscores a continued appetite for investment in multifaceted urban real estate. The involvement of established firms like JLL, DTH Capital, Rose Associates and Goldman Sachs indicates a strong confidence in the property's value and the luxury housing market's resilience, particularly in a landmarked area with historical significance.

From a market research perspective, the success of this refinancing deal, despite current credit market challenges, highlights the attractiveness of adaptive reuse projects that transform office spaces into luxury residential units. This trend is driven by shifting demographics and work patterns, which have increased demand for centrally located living spaces with high-end amenities.

The presence of Michelin-starred restaurants and a top-rated cocktail bar within the property not only enhances its prestige but also contributes to the local economy by drawing both residents and visitors, potentially increasing the property's foot traffic and retail revenue.

Financial Analyst

The $395 million refinancing deal for 70 Pine Street is a significant transaction that can have ripple effects on the commercial real estate market. Financially, securing such a substantial amount during challenging credit market conditions is indicative of the property's strong performance and the underlying health of the luxury real estate segment.

Investors and stakeholders can interpret this refinancing as a positive signal of market stability and the potential for long-term returns. The involvement of Goldman Sachs provides an additional layer of credibility, as they typically engage with high-quality assets. This move could also potentially free up capital for DTH Capital and Rose Associates for future investments or to optimize their existing portfolio.

The transaction's success may also influence comparable properties' valuations in the Financial District and similar urban centers, potentially affecting stock prices of companies with significant real estate holdings in these areas.

Real Estate Investment Trust Analyst

70 Pine Street's refinancing reflects a strategic move in the real estate investment trust (REIT) sector, particularly for those focusing on mixed-use properties. Investors in REITs that specialize in urban luxury properties might see this deal as a benchmark for evaluating similar assets in their portfolios.

For REITs, the ability to maintain occupancy rates and attract high-quality tenants is crucial. The property's diverse offerings, including luxury apartments, retail space and a hotel, cater to various market segments, which can be a hedge against economic downturns in any single real estate sector.

Additionally, the property's proximity to major transportation hubs and employment centers in Manhattan may contribute to its sustained desirability, which is essential for long-term REIT performance.

Previously an office building, 70 Pine Street currently features 612 rental apartments, 39,075 square feet of retail space and a 165-key hotel

NEW YORK, Feb. 14, 2024 /PRNewswire/ -- JLL's Capital Markets group announced today that it has secured the $395 million refinancing of 70 Pine Street, a 66-story, mixed-use property with luxury multi-housing rental, retail and hotel space located in a landmarked building in the Financial District of New York City.

JLL worked on behalf of the borrowers, DTH Capital and Rose Associates, to secure financing through Goldman Sachs.

The renowned landmark property was built in 1932 originally for office use, and at the time, was the third tallest building in the world. Renovated in 2016, the property is now a state-of-the-art adaptive reuse building with 612, 100% free-market, luxury rental residences featuring hardwood floors, high-end kitchens with stone countertops and stainless-steel appliances and in-unit washers and dryers. In addition, residential amenities at 70 Pine include a 22,000-square-foot fitness center with an array of fitness equipment, two golf simulators, two bowling alleys and a screening room in the property's historic bank vault. The property also includes a children's playroom, co-working and lounge spaces.

The 165-key Mint House hotel occupies floors two through six of the property and offers spacious studio-, one- and two-bedroom apartments. With the intention to attract guests seeking longer term stays, the rooms feature fully equipped kitchens, en suite laundry in select rooms, custom-designed furniture, free wi-fi, spacious living areas and smart TVs. Most recently, Mint House at 70 Pine has ranked one of the top hotels in New York City on Trip Advisor.

The property features two world-renowned restaurants including, SAGA (two Michelin-starred) and Crown Shy (Michelin-starred), and Overstory, a World's 50 Best-rated contemporary cocktail bar. There is also a gourmet market that focuses on fresh and regionally produced goods. Other retail offerings include a beauty salon, coffee shop, and a quick-service restaurant.

Marc Ehrlich, Chief Investment Officer at Rose Associates, said, "Rose Associates and DTH Capital thank JLL, Goldman Sachs and the individual team members who assisted in this refinancing. While the current credit market has its challenges, 70 Pine drew significant interest. This property has outperformed as an asset since leasing began in 2016, and it is a shining example of a successful office to residential conversion."

70 Pine is located in the heart of the Financial District and is walking distance to eight subway lines, providing seamless access to all major employment centers throughout Manhattan, Brooklyn and New Jersey. Residents are able to commute to Midtown Manhattan in under 15 minutes with express train service to Grand Central and Penn Station. 70 Pine is situated five blocks from the Wall Street water ferry, which provides access to Dumbo, Williamsburg, Long Island City, East 34th Street and several other stops along the Brooklyn, Queens and Manhattan waterfront.

JLL's Capital Markets Debt Advisory Team was led by Senior Managing Director Christopher Peck and Managing Director Geoff Goldstein and Vice President Christopher Pratt.

"Rose Associates and DTH Capital are amongst the most experienced sponsors in the industry, and their market-leading redevelopment of this iconic property presented lenders with a spectacular opportunity in New York's strong luxury housing market. It was a pleasure to work with all parties to close the transaction," said Peck.

JLL's Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources on JLL, please visit our newsroom.

About DTH Capital
DTH Capital is an experienced developer and owner manager of real estate focused on the conversion and management of historic office properties into residential apartments in New York City. DTH has developed and managed a 2.6 million square foot multi-unit rental apartment portfolio comprising four landmark properties (2,218) apartments in Manhattan's Financial District. DTH Capital was initially formed with the US real estate assets of Eastbridge Group, a family holding company based in Luxembourg, before partnering in 2013 with Belgian operated AG Real Estate. Eastbridge Group manages DTH Capital and is focused on long-term value creation through strategic vision and premier operations.

About Rose Associates Incorporated
Established in 1925, Rose Associates is a premier real estate firm specializing in multifamily rental properties in New York City and the tristate area. Focused on the development, acquisition and management of the highest quality assets, the firm is currently developing six properties in the New York City metropolitan area. Rose's management platform incorporates state-of-the-art services to maximize revenue and enhance asset value, ensuring that Rose properties consistently outperform the market. Under the leadership of CEO and President Amy Rose, the firm is a certified Women's Business Enterprise that is currently pursuing a diverse and aggressive growth strategy. 

About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500^® company with annual revenue of $20.9 billion and operations in over 80 countries around the world, our more than 105,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAY^SM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

Contact: Jenna Sharp, Associate, Public Relations
Phone: +1 214 394-3356
Email: Jenna.Sharp@am.jll.com

 

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SOURCE JLL

FAQ

What is the significance of the $395 million refinancing deal secured by JLL's Capital Markets group for 70 Pine Street?

The refinancing deal highlights the financial strength and market confidence in the mixed-use property, ensuring continued development and operations.

What are the key features of 70 Pine Street after its renovation in 2016?

After the renovation, 70 Pine Street now offers 612 luxury rental residences, high-end amenities like a fitness center, golf simulators, and gourmet dining options, along with a 165-key hotel.

Who were the borrowers represented by JLL in securing the financing for 70 Pine Street?

JLL worked on behalf of the borrowers, DTH Capital and Rose Associates, to secure the financing through Goldman Sachs.

What are the residential amenities available at 70 Pine Street?

The property offers a fitness center, golf simulators, bowling alleys, a screening room, children's playroom, co-working and lounge spaces, and high-end kitchens with in-unit washers and dryers.

What are the dining options available at 70 Pine Street?

The property features two world-renowned restaurants, SAGA and Crown Shy, a top-rated cocktail bar, a gourmet market, a beauty salon, coffee shop, and a quick-service restaurant.

What transportation options are available near 70 Pine Street?

Residents have access to eight subway lines, with a short commute to major employment centers in Manhattan, Brooklyn, and New Jersey, as well as a nearby water ferry providing access to various waterfront locations.