Newmark Arranges $150 Million Financing of 295 Fifth Avenue in Manhattan
Newmark has secured a $150 million loan for the financing of 295 Fifth Avenue in Manhattan, representing a significant investment in the 19-story, 710,000-square-foot trophy office tower by Tribeca Investment Group, Meadow Partners, and PGIM Real Estate. Led by Vice Chairmen Dustin Stolly and Jordan Roeschlaub, the financing underscores the property's appeal amid market uncertainties. Recent renovations enhance its attractiveness, particularly in the Midtown South submarket, which is experiencing a post-COVID
- Secured $150 million loan for financing 295 Fifth Avenue, signaling strong investor confidence.
- Recent renovations include a new lobby, open-floor plates, and amenities, enhancing property value and appeal.
- Strategically located in Midtown South, which is currently a hot submarket for office leasing.
- The ongoing uncertainties related to the COVID-19 pandemic could impact future occupancy and rental rates.
- The financing highlights a reliance on high-end office space, which may be at risk if demand shifts post-pandemic.
NEW YORK, Nov. 17, 2022 /PRNewswire/ -- Newmark announces that the firm has arranged a
"Being able to secure financing for this type of product during this uncertain time speaks to the quality of the collective ownership of the property," said Stolly. Roeschlaub added, "Since the pandemic, we've seen office users flocking to quality assets to attract and retain their talent. The recent top-of-the-line modernization at 295 Fifth Avenue will make it a destination property for the city's office tenants."
Sponsorship is near completion of a comprehensive renovation effort which includes a new double-height lobby, conversion to full-floor open-floor plates and a penthouse addition featuring floor-to-ceiling windows looking out over Midtown South Manhattan in addition to a complete overhaul of properties windows, HVACs and elevators. The capital project also transformed the retail storefronts and added significant outdoor space, terraces, and a new amenity center to the property.
The property is uniquely positioned to capitalize on the post-Covid "flight to quality" seen across the city, especially given its location in the heart of Midtown South, one of New York's hottest office leasing submarkets. Highly amenitized, Class A buildings in this submarket—especially the Park Avenue South Square Park corridor, where the property is located—have attracted a cluster of firms led by a strong mix of Fortune 500 financial services companies, media and entertainment and tech firms. These firms benefit from the area's combination of live/work/play amenities and tremendous accessibility with Penn Station, Grand Central Station, the Port Authority Bus Station and the Path Train all within walking distance.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark's comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform's global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues of approximately
Statements in this document regarding Newmark that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the effects of the COVID-19 pandemic on the Company's business, results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.
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SOURCE Newmark Group, Inc.
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