Newmark Facilitates $90M Green Loan for GDSNY with Deutsche Pfandbriefbank AG at 1245 Broadway

Rhea-AI Summary

Newmark Group, Inc. (NMRK) announced the closing of a $90 million loan for the trophy office tower at 1245 Broadway in NoMad, New York. This financing, secured through Deutsche Pfandbriefbank AG, will support current and future tenant fit-outs in the 200,000-square-foot Class A+ building. The deal marks pbb's first Green Loan in the U.S., emphasizing sustainability with strict environmental criteria met by the property. 1245 Broadway has quickly gained a reputation for being an environmentally sustainable office space, attracting notable tenants from the film and technology sectors.

Positive

• Secured a $90 million loan to support tenant fit-outs, promoting property development.
• The financing is pbb's first Green Loan in the U.S., aligning with sustainability goals.
• The building is recognized for its environmentally sustainable design, attracting high-profile tenants.

Negative

• None.

1245 Broadway is a newly constructed Class A+ boutique office building in NoMad, New York.

NEW YORK, March 10, 2023 /PRNewswire/ -- Newmark Group, Inc. (Nasdaq: NMRK) ("Newmark" or "the Company"), a leading full-service commercial real estate business, announces Corem AB and GDS Development LLC (GDSNY) have closed a $90 million loan on their trophy office tower at 1245 Broadway with German bank Deutsche Pfandbriefbank AG (pbb), one of Europe's leading real estate financing institutions. Newmark's Debt & Structured Finance team secured the loan on behalf of ownership. The low-leverage take-out facility will include financing current and future tenant fit-outs for the 200,000-square-foot tower in NoMad.

"We are delighted to be partnering with a lending institution with pbb's stellar reputation for the financing at 1245 Broadway," said Alan Rudikoff, co-founder of GDSNY. "This property is well-positioned to capitalize on the 'flight-to-quality' seen in the office sector."

1245 Broadway is an award-winning 23-story Class-A office building at the corner of 31st Street and Broadway in NoMAD, one of New York City's most dynamic neighborhoods. Designed by Skidmore, Owings & Merrill and developed by GDSNY, the building features architectural cast-in-place concrete, large triple-glazed windows, a private club, food and beverage catering to tenant floors and panoramic views of the city. The building has received LEED-Gold certification and offers the latest touchless technology and air quality.

The financing qualifies as pbb's first Green Loan in the United States, having launched the product in this region at the start of the year. With Green Loans, pbb finances for its customers the purchase or recapitalization of commercial properties that meet strict environmental criteria and investments in the sustainability of existing properties. For this purpose, the bank has developed a proprietary scoring model that considers ten criteria in the three categories "energy efficiency," building certification" and "other sustainability factors." 1245 Broadway scored high in all categories.

"1245 Broadway has quickly gained a reputation as one of Manhattan's environmentally sustainable trophy office buildings, and our organization is pleased to be playing a role in its continued success," commented Andrew Fleming of pbb.

The financing for the asset was secured by Newmark's Co-Heads of Debt & Structured Finance Jordan Roeschlaub and Dustin Stolly, along with Nick Scribani.

"Class A+ institutionally-owned office product, irrespective of the current capital markets environment, continues to attract backing from world-class capital like pbb," said Stolly. "We're looking forward to seeing this new partnership succeed by bringing ownership's vision of the newly constructed property into fruition."

Due to its iconic design and careful positioning, 1245 Broadway has already become known as Manhattan's premier film, media, technology and creative arts headquarters. Notable tenants include A24 Films (currently nominated for 17 Oscars in 2023), the TV production company 101 Studios (owner of the Yellowstone franchise), international gaming designers Avalanche Studios, global digital advertising firm GumGum and Wonderview Studios, a film and TV production company.

About GDSNY
GDS Development (GDSNY) is an award-winning full service, vertically integrated owner, operator, developer, lender and designer of multi-family and commercial real estate in the New York metropolitan area. Founded in 2007 by architect Michael Kirchmann and Alan Rudikoff, GDSNY has delivered in excess of $4.5 billion in real estate assets throughout New York City. www.GDSNY.com

About Deutsche Pfandbriefbank
Deutsche Pfandbriefbank is a leading specialist bank for investments in commercial real estate and public infrastructure projects in Europe and the USA. It is one of the largest issuers of Pfandbriefe, also making it an important issuer of covered bonds in Europe. Deutsche Pfandbriefbank AG is listed on the Frankfurt Stock Exchange.

In addition to Germany and USA, the main business focus is on Great Britain, France, Spain, the Nordic countries and countries in Central and Eastern Europe. In these core markets, pbb offers its customers a strong local presence with expert knowledge across the whole spectrum of the financing process. As a result of its competencies in loan structuring, its cross-border approach and co-operation with lending partners, pbb is able to complete both complex funding and transactions involving a number of countries.

About Newmark
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 $2.7 billion for the year ending December 31, 2022. Newmark's company-owned offices, together with its business partners, operate from approximately 180 offices with nearly 6,700 professionals around the world. To learn more, visit nmrk.com or follow @newmark.

Discussion of Forward-Looking Statements about Newmark
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.

FAQ

What is the significance of the $90 million loan secured by Newmark Group (NMRK)?

The $90 million loan will support tenant fit-outs at the newly constructed office tower at 1245 Broadway in NoMad, enhancing its market value and attractiveness.

Who financed the $90 million loan for Newmark Group (NMRK)?

The loan was financed by Deutsche Pfandbriefbank AG, a leading European real estate financing institution.

How does the financing relate to sustainability for Newmark Group (NMRK)?

The financing qualifies as pbb's first Green Loan in the U.S., highlighting the sustainable features of the 1245 Broadway property.

What is the reputation of the building located at 1245 Broadway for Newmark Group (NMRK)?

1245 Broadway has quickly gained a reputation as an environmentally sustainable trophy office building, attracting notable tenants from various industries.

What type of tenants is 1245 Broadway attracting under Newmark Group (NMRK)?

Notable tenants include A24 Films, 101 Studios, Avalanche Studios, GumGum, and Wonderview Studios, indicating its appeal to the film, media, and technology sectors.