RM Capital Management arranges $57.5 million financing for Reading International

44 Union Square - New York, N.Y.

New York, NY RM Capital Management has arranged $57.5 million of first mortgage and mezzanine construction financing for the redevelopment of the Tammany Hall Building on behalf of Reading International, Inc. The construction financing will allow for the renovation and repurposing of the landmarked Tammany Hall building located at 44 Union Sq. into a six-story glass-domed destination retail and office building containing 73,322 rentable s/f, inclusive of BOMA adjustments and subject to lease negotiations and the final tenant mix. Upon completion, it is currently anticipated that the project will be comprised of three contiguous lower levels of retail and three floors of office space.

The property, the former headquarters of the Tammany Hall political organization, required a variance and Landmarks Commission approval to move forward with the development.

“The landmarked Tammany Hall property will be transformed through a gut renovation and the addition of a new distinctive domed glass roof. This property will anchor the northeast corner of Union Square, which has been demanding a destination property such as this. Reading’s redevelopment plan fits the bill perfectly,” RM Capital’s co-managing partner Marc Sznajderman said.

The $50 million senior construction financing was provided by Bank of the Ozarks and the $7.5 million mezzanine loan was provided by an affiliate of Fisher Brothers. “We are thrilled to be working with Bank of the Ozarks and Fisher Brothers on this exciting project. RM Capital expertly guided us through this complex financing,” said Margaret Cotter, executive vice president of real estate management and development – NYC for Reading International. The financing was placed by co-managing partners Marc Sznajderman and Romano Tio and vice president Bo Diamond of RM Capital.

“The complicated nature of the construction and the scarcity of development financing in general required a lending team that understood the value of the location and a structure that met the needs of the project and the borrower,” said Michael Buckley, managing principal of Edifice Real Estate Partners, the development manager for the project. “RM Capital worked closely with the lenders and Reading to ensure nothing was lost in the translation and managed the process throughout to a successful closing,” he said.