JEMB Realty refinances Herald Towers for $250 million

"JEMB Realty, an experienced real estate owner, developer and management company headquartered in Manhattan, refinanced Herald Towers, the trio of 25-story towers at 50 West 34th St. for $250 million," said, Joseph Jerome, principal of JEMB Realty. Peter D'Arcy, group manager of the Structured Real Estate Finance Group at M&T Bank-NYC arranged the 3-year short-term financing. "We are delighted to continue to maximize the value of Herald Towers, one of the City's premier residential rental properties in Midtown, and simultaneously free up substantial equity to grow and enhance JEMB Realty's presence in the North American real estate marketplace and expand our asset base," said Jerome "We are also delighted with the performance of M&T Bank with which we have enjoyed a productive long-term relationship. We were in discussions as the market started to unravel, deals were being canceled or re-traded and the lending climate grew increasingly unsettling. In an extremely volatile market, M&T delivered on the terms of the transaction and we had a seamless 45-day closing." Built in 1913 as a hotel and long known as the McAlpin House, this historic property was acquired by JEMB Realty in 1999 for $150 million (in a transaction also financed by M&T Bank). Through hands-on asset management, a multi-million dollar capital improvement program and contributions to the Herald Square neighborhood's renaissance, JEMB has transformed Herald Towers into one of the area's most impressive residential rental properties. "As home to a variety of national retailers and approximately 693 residential tenants, the asset has increased in value significantly and the ownership sought to capitalize on an increase in equity," said, D'Arcy. "Our long-term relationship with JEMB Realty is based on Jerome's professionalism, the firm's solid reputation as an owner and manager, as well as the first-class portfolio of properties. These variables made this transaction a win-win situation." Retailers located at Herald Towers include Forever 21, Gap and other prominent national chains. Residential amenities include a recently-renovated lobby, an on-site New York Sports Club facility, high-speed connectivity, proximity to all transportation, a responsive in-house management team and incredible views of Manhattan's world-famous skyline.