Morgan Stanley launches $ 44 million CMBS loan on SoHo boutique office building – Business Observer
Cape Town Councilors grabbed $ 43.5 million in CMBS debt issued by Morgan stanley to refinance a boutique office building in SoHo, Commercial Observer has learned.
Fixed-rate, interest-only commercial mortgage-backed securities (CMBS) lending paid off existing debt on 5 Crosby Street, a 75,000 square foot, six story loft office building between Grand Street and Howard Street in Manhattan’s SoHo neighborhood.
Meridian Capital Group‘s Adam hakim and Jacques Murad spearheading the funding arrangement.
Hakim said Morgan Stanley was “fantastic in its ability to provide Cape Advisors with fixed rate funding on favorable terms and structure.”
Morgan Stanley declined to comment on the deal.
In 2016, Cape Advisors completed a full rehabilitation and refurbishment of the pre-war building, according to property-level information from Shark Property. The company incurred approximately $ 30 million in debt with East West Bank in 2014 to help finance the work, the city’s mortgage records show.
The developer quickly leased the property, which now includes furniture, insurance, advertising, and tech tenants, such as a publicly traded insurance company. Lemonade Insurance Company, advertising company Pereira O’Dell and furniture retailer BDDW, which is a two tenant inside the commercial space on the ground floor and lower level of the property. Lemonade, which went public in June 2020, will expand its presence in the building over the next 18 months, according to Meridian Capital.
“The closing of this transaction highlights the continued demand for high quality office space in key markets in downtown Manhattan,” said Hakim. “Tenants like BDDW and Lemonade appreciate the irreplaceable character of a loft along a cobblestone street in SoHo.
Cape Advisors officials could not be reached.
Mack Burke can be contacted at [email protected].