GFP Real Estate closes on $86.5 million loan from Apple Bank for refinancing of 515 Madison Ave.

Manhattan, NY GFP Real Estate has closed on an $86.5 million loan from Apple Bank for the refinancing of 515 Madison Ave., a 42-story, 350,000 s/f class A building located in the Plaza District.

Paul Talbot, senior managing director of Newmark, represented GFP Real Estate in securing the loan. As part of the transaction, GFP acquired the minority interest in the building owned by ATCO, bringing GFP’s ownership stake in the building to 100%. Iron Hound Management assisted in the negotiation of the extension of the initial loan on behalf of GFP in 2023.

The new 10-year, floating-rate permanent loan replaces an existing $120 million mortgage secured in 2012 which was subsequently paid down to $81 million.

Tenants at the building include Encore Physical Therapy, Longacre Asset Management and the headquarters of GFP Real Estate.

“This refinancing reflects the strength of the building and our long-term conviction in well-located Manhattan assets,” said Kephra Stone, associate at GFP Real Estate. “We’ve always taken a conservative approach to leverage, and that discipline put us in a position to execute this financing on our terms, even in a challenging capital markets environment.”

“We’ve experienced many cycles over the years, and disciplined ownership has always been the key,” said Jeffrey Gural, chairman of GFP Real Estate. “Following COVID, we worked diligently to rebuild occupancy, and the building is now 99% leased. The successful refinancing of 515 Madison Ave. reinforces the strength of well-located assets and the importance of long-term management. We thank Newmark and Iron Hound Management for their role in executing the financing, as well as Apple Bank for being such an incredible partner.”

“The combination of GFP Real Estate’s family ownership under Jeff Gural and a proven history of maintaining occupancy levels above 95% drove significant lender interest,” said Talbot. “Apple Bank was ultimately selected based on the strength of its terms and its long-standing relationship with the firm.”

Built in 1932 and known as the DuMont Building, 515 Madison is a 42-story, 350,000 s/f class A building designed by John Carpenter. One of the building’s most distinctive features is a broadcasting antenna that traces back to the building’s role in the first television broadcasts of Allen B. DuMont’s experimental television station W2XWV in 1938. This building’s careful restoration of its renovated entrance and lobby in 2009 kept its beautiful architectural elements intact yet modernized for today’s tenants.

Located south of Central Park, 515 Madison provides access to a multitude of dining options and well-known landmarks like the New York City Center for Performing Arts, Carnegie Hall and Rockefeller Center, which are all just a short walk away. The E and M trains are located in the building and the 6 train is only a block away, providing convenient transportation options.