Williams Equities and Citi Real Estate Funding close
$155 million CMBS refinance of 28-40 West 23rd St.

Manhattan, NY Williams Equities has completed a $155 million CMBS loan for the group’s 28-40 West 23^rd St. property. Citi Real Estate Funding Inc. is the lender on the five-year loan.

The new debt — one of the largest mixed-use with office concentration loans within CMBS in the past two years — replaces financing for the thriving asset and will fund new building improvements and amenities.

“We firmly believe in and continue to finance New York City mixed-use with office for great sponsors,” said Ackman-Ziff president Simon Ziff, who along with Russell Schildkraut, represented Williams Equities in the transaction. “This sponsorship obviously meets that test.”

The two-building, 578,105 s/f former Ladies’ Mile department store at 28-40 West 23^rd St. is located between Fifth and Sixth Aves. in the Flatiron District and serves as home to an array of leading creative, digital, and tech firms. Long-time retail anchor Home Depot, which signed an extension at the property, occupies the ground floor, lower level, and mezzanine.

Williams Equities principals Andrew Roos, Michael Cohen, and Robert Getreu, as well as senior advisors Jessica Verdi and Mac Roos, assisted in the transaction. Joe Dyckman, of Citigroup, represented the lender. On the legal side, attorney William Stempel represented Williams Equities. Gerard Keegan and Lauren Scarantino, of Alston & Bird, represented Citigroup.

Office tenants at the property include credit card company Ramp and Estee Lauder brand Aramis.

Williams Equities has already made considerable capital improvements at the cast-iron property over the last several years, reinventing the asset. Capital improvements included new lobbies on both 22^nd and 23^rd Sts. and upgraded, energy efficient building infrastructure.

Williams Equities noted that the CMBS loan positions ownership to further upgrade one of its most successful properties and continue attracting high-end tenants who thrive at 28-40 West 23^rd St. Scheduled improvements include an updated atrium and skylights and building-wide roof deck amenity atop the 12-story 28 West building, and the creation of a triplex penthouse suite with private outdoor space at the 40 building.

“We are gratified to have worked with Citigroup on this significant refinance of 28-40 West 23^rd St., which is in line with our successful, timeless multi-generational strategy,” said a Williams Equities spokesperson. “As long-term, hands-on owners and operators, we have taken a judicious approach across our entire portfolio to ensure that our properties remain in strong financial health for decades to come. We continue to see tenants attracted to well-capitalized and -positioned B buildings throughout the city.”