Walker & Dunlop Arranges $148 Million Refinance for Tallest Building in Harlem
Walker & Dunlop announced it has successfully arranged a $148 million refinance loan for The Victoria, the tallest building in Harlem. The project, developed by Lam Group and Exact Capital, includes luxury residences, a Marriott-branded Renaissance Hotel, and retail space. Completed in Q3 2023, The Victoria features 191 residential units, a 211-key hotel, over 23,000 square feet of retail space, and 52 below-grade parking spaces. Located near prominent cultural landmarks like the Apollo Theater and Columbia University's Manhattanville campus, the property blends modern amenities with Harlem's rich cultural heritage. The loan, secured by Aareal Capital, will support ongoing operations and future enhancements of this iconic development.
- Successfully secured $148 million loan for The Victoria.
- The Victoria is Harlem's tallest building, enhancing its market status.
- Project includes 191 luxury residences and a 211-key Marriott-branded hotel.
- Over 23,000 square feet of retail space, boosting economic activity.
- 52 below-grade parking spaces for added convenience.
- Prime location near cultural landmarks and major retail outlets.
- Loan supports ongoing operations and future enhancements.
- None.
Insights
Walker & Dunlop's arrangement of $148 million in refinancing for The Victoria project is a significant financial maneuver. While the refinance is not an acquisition or earnings report, it has substantial implications for investors involved in commercial real estate and urban developments. The loan will help sustain ongoing operations and potential enhancements, signaling stable long-term viability. From a financial perspective, securing a significant loan from a lender like Aareal Capital indicates strong confidence in the project's economic potential. The refinance allows the developers to reallocate their capital, possibly freeing up resources for new investments or operational improvements. For retail investors, this move suggests continuing investment in Harlem's real estate market, which might signal a positive trend in property values and rental income in the area.
In the broader context, refinancing often indicates that a project's initial phase has met its financial and operational goals, necessitating further investment for growth. This is important for projects with mixed uses like The Victoria, which combines residential, commercial and hospitality segments. Investors should consider the ongoing demand for luxury residences and hotel occupancy rates in Harlem to assess the project's long-term profitability.
The Victoria’s refinancing underscores its strategic importance within Harlem's redevelopment. Located near major cultural and educational institutions, the property benefits from substantial foot traffic and community engagement. These factors enhance the attractiveness of the residential units, hotel and retail spaces, potentially driving higher occupancy rates and rental yields. For investors, the project's location is a key advantage, positing that proximity to landmarks like the Apollo Theater and Columbia University can significantly boost property value.
Moreover, the inclusion of a Marriott-branded Renaissance Hotel within the development adds a layer of credibility and luxury appeal, likely to attract affluent clientele and tourists. This can result in higher revenue per available room (RevPAR), a critical metric in the hospitality industry. The combination of luxury living, high-end retail and hospitality suggests a diversified revenue stream, mitigating risks associated with market volatility in any single segment.
The refinancing of The Victoria highlights its role in Harlem's urban development. The project represents a blend of cultural preservation and modern luxury, aligning with contemporary urban planning goals that emphasize community enrichment and economic vitality. The Victoria maintains connections to Harlem's historical roots while delivering modern amenities, reinforcing the area's cultural and economic resilience. For investors, this balance of preserving heritage and offering luxury living is crucial, as it suggests ongoing community support and relevance.
The below-grade parking spaces and expansive amenity program offer added convenience and attractiveness to residents and visitors, enhancing the property's overall value. As urban centers grow denser, such integrated developments that offer holistic living experiences are becoming increasingly valuable. Investors should note the potential for long-term appreciation and sustained demand in such projects, particularly in culturally rich and strategically located neighborhoods.
The Victoria (Photo: Business Wire)
The Walker & Dunlop New York Capital Markets team, led by Aaron Appel, Keith Kurland, Jonathan Schwartz, Adam Schwartz, Ari Hirt, and William Herring, acted as exclusive advisors to the clients, Lam Group and Exact Capital. The team identified Aareal Capital as the lender to secure the loan. The loan will support ongoing operations and future enhancements of this iconic project, known for its rich cultural heritage and strategic location.
The Victoria, originally built around Harlem's historic Victoria Theater, blends luxury residences, a Marriott-branded Renaissance Hotel, and premier retail space. The project, completed in Q3 2023, stands as Harlem's tallest building, offering 191 luxury residences, a 211-key hotel, and over 23,000 square feet of retail space. The development also includes 52 below-grade parking spaces, enhancing convenience for residents and visitors alike.
The Victoria enjoys a prime location in Harlem, with proximity to major retail outlets, transportation hubs, and renowned cultural institutions such as the Apollo Theater and
"We are thrilled to have secured this financing for Lam Group and Exact Capital for The Victoria,” said Aaron Appel, senior managing director and co-head of New York Capital Markets at Walker & Dunlop. “This transaction underscores the project's significance as a transformative development in Upper Manhattan, combining luxury living, hospitality excellence, and cultural preservation."
The property’s meticulously crafted unit finishes and modern design, expansive amenity program, destination retail, and below grade parking garage atop one of Harlem’s most iconic cultural institutions position the property as the marquee development in Upper Manhattan.
In 2023, Walker & Dunlop’s Capital Markets group sourced capital for transactions totaling nearly
About Walker & Dunlop
Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in
View source version on businesswire.com: https://www.businesswire.com/news/home/20240710404016/en/
Investors:
Kelsey Duffey
Investor Relations
Phone 301.202.3207
investorrelations@walkeranddunlop.com
Media:
Nina H. von Waldegg
VP, Public Relations
Phone 301.564.3291
info@walkeranddunlop.com
Source: Walker & Dunlop, Inc.
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