Arrow arranges $61 million financing
for acquisition of 5 Hanover Sq.

Manhattan, NY Arrow Real Estate Advisors arranged $61 million in financing for the acquisition of 5 Hanover Sq., a 300,000 s/f office building in the Financial District. The financing supports a joint venture between Samuel Fisch and David Werner and was bifurcated to accommodate separate executions, allowing for the sponsor to leverage the property’s existing condominium structure. The financing was arranged by Arrow’s Morris Betesh, founder and managing partner, Morris Dabbah, senior vice president and Louis Halperin, associate.

The 24-story building is 41% occupied. The financing package was structured to support the building’s dual strategy and included two components. Arrow arranged a $40 million acquisition and pre-development loan from 99c for the upper 266,639 s/f, which is slated for an office-to-residential conversion. This financing will provide the borrower with the capital and flexibility to advance their business plan. For the lower five floors, leased long-term to a school, Arrow arranged a $21 million acquisition loan from Deutsche Bank which provided a fixed-rate solution aligned with the stabilized profile of the lower-level condominium unit.

“This transaction required creativity and vision,” said Betesh. “It demanded capital partners who understood the complexity, could move quickly, and offer the right amount of flexibility to allow sponsorship to execute their business plan. Finding those partners was key to getting the deal done — and we continue to see capital gravitating toward well-located office assets with a clear path to repositioning.”

The structure presented unique challenges, including the coordination of two distinct loans with separate business plans under a tight 45-day closing window. Arrow’s ability to strategically bifurcate the asset by its condominium components — stabilized and transitional — allowed the firm to maximize proceeds while providing tailored financing solutions for each portion of the property.