Arrow Real Estate Advisors secures $29.5 million bridge loan for 260 West 39th St. refinance

Manhattan, NY Arrow Real Estate Advisors has secured a $29.5 million loan for the refinance of 260 West 39^th St. The loan was arranged on behalf of MJ Orbach Associates and provided by Ladder Capital. The transaction was led by Morris Betesh, founder and managing partner, Jack McPhail, senior vice president, Alex Ellman, senior associate, and Joseph Kean, analyst of Arrow Real Estate Advisors.

The 176,000 s/f, 19-story building includes ground-floor retail and is situated in the Garment District between Seventh and Eighth Aves. The property is leased to a mix of tenants across fashion, design, creative, and professional sectors. 

“For borrowers who have a credible business plan, there is capital available, but sourcing it requires targeted outreach and a lender who can underwrite to the fundamentals of the specific asset rather than painting every office building with the same brush. Ladder Capital recognized the strength of the in-place cash flow, the granularity of the tenant base, and the accretive leasing runway at this basis, and they moved quickly to provide a structure that works for both sides,” said Betesh. “Office remains the most polarizing asset class in commercial real estate right now, and the reality is that many lenders are not engaging with the sector at all.

The financing provides the borrower with flexibility to execute a strategic lease-up of remaining vacancy while building on the asset’s strong in-place cash flow.