Meridian Capital Group, LLC and Eastdil Secured, national leaders in real estate advisory services, have successfully collaborated on the negotiation of $700 million in CMBS financing to finance the purchase of the leasehold position in New York City's Mobil Building, at 150 East 42nd Street. The financing was arranged on behalf of a partnership that includes David Werner and Mark Karasick.
The 10-year, fixed-rate, full-term interest-only CMBS loan was provided by Morgan Stanley Mortgage Capital Holdings, LLC. Morgan Stanley won this financing opportunity, despite substantial liquidity in the CMBS market and broad competition for this credit, by leveraging its ability to advance a loan of this size and complexity with exceptional speed and efficiency.
The financing allowed the borrower group to acquire the leasehold interest in the Mobil Building from Hiro Real Estate LLC, which acquired the leasehold in 1987. In conjunction with the acquisition, the Goelet family, who holds the fee position, extended the lease to run for 99 years.
The Mobil Building, a recognized jewel in the Manhattan skyline, is a 42-story, 1.8 million square foot class-A office tower on East 42nd Street, between Lexington and Third Avenues. Designed by Harrison & Abramovitz and constructed in the 1950's, the property is located in the heart of the vibrant Grand Central submarket and sports a distinctive stainless steel façade. Among other notable tenants on long-term leases, the building houses the New York headquarters of Wells Fargo & Co. and the Mount Sinai Health System. Tags: