Meridian Capital Group, LLC, a leading national commercial real estate finance and advisory firm, negotiated $230 million in acquisition financing for the purchase of Steinway Hall located at 109-113 West 57th St. on behalf of partnership led by JDS Development Group.
The one-year, interest-only loan features a fixed-rate and two six-month extension options. Meridian managing directors, Aaron Appel and Moshe Majeski originated and executed the financing.
As part of this transaction, JDS, along with partner Property Markets Group, also recapitalized and consolidated their existing development parcel at 105-107 West 57th St.
Steinway Hall was built in 1924 and has been either fully or partially occupied by Steinway & Sons, the famed piano maker, since its construction. The building, designed by architecture firm Warren & Wetmore, was designated and registered as a historic and cultural landmark in 2001. The façade of Steinway Hall features a bas-relief of Apollo and a musical muse in the lunette above the grand window at street level. The main room of the building is a two-story rotunda with a domed ceiling that was hand painted by Paul Arndt.
The property is located between Sixth and Seventh Aves., in the Midtown area. This location will afford future residents of the development access to many prime New York City attractions including Central Park, Columbus Circle, Rockefeller Center, Times Square and the Museum of Modern Art, in additional to numerous leading restaurants and global retail destinations.
"The acquisition financing provided the sponsorship with the necessary capital to create a truly extraordinary development assemblage. Meridian was able to vividly illustrate the sponsor's vision for the property to the lender in a compelling way that allowed the loan to close in a one-week timeframe," said Appel. "Ultimately, JDS Development Group will restore Steinway Hall to its original grandeur and will construct a more than 900-foot tall tower next door. Given the creativity and ability of the sponsor, the new property is destined to become an iconic New York City skyscraper, building on the unique pedigree of Steinway Hall," he said. "The transaction was made possible by both a savvy lender and a brilliant developer working in concert to meet common goals."
"The 57th Street corridor remains one of the most attractive locations for retail and residential development in the city. This is evidenced by the numerous development projects underway and the recent volume and velocity of property sales in the area," added Mr. Majeski.
Additionally, in March 2013, Meridian arranged $128 million in acquisition financing on behalf of JDS Development Group for the company's purchase of the 730,426 s/f development site located at 616 First Avenue, between East 35th Street and East 36th Street, in Manhattan.
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